acquisition and another $$11,500$ in connection with stock issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows:

Note: Parentheses indicate a credit balance.

Presidio's appraisal of Mason's fair values deemed three accounts to be undervalued: Inventory by $$7,550,$ Land by $$17,600,$ and

Buildings by $$25,400.$ Presidio plans to maintain Mason's separate legal identity and to operate Mason as a wholly owned subsidiary.

Required:

a$.$ Prepare Presidio's journal entries to record its acquisition of Mason, related professional fees paid, and stock acquisition costs.

b$.$ Separately determine each individual amount that Presidio Company would report in its consolidated balance sheet following the

acquisition of Mason. Include in Presidio's retained earnings any adjustments to income accounts from part $($a$).$

c$.$ To verify the answers found in part $($b$),$ adjust Presidio's column of accounts for the journal entries in part $($a$)$ and then prepare a

worksheet to consolidate the balance sheets of these two companies at the acquisition date.