Alan an acquiring company pays $35 million in cash, and issues new no-par stock with a fair value of $50 million, to the acquired companys former shareholders, for all of the voting stock of the acquired company. Registration fees associated with the new stock issuance are $1 million, paid in cash. Consulting fees for the acquisition are $5 million, paid in cash. The net entry the acquiring company makes to record the acquisition includes:

a. A debit to investment in acquired company of $87 million

b. A credit to cash of $85 million

c. A debit to merger expenses of $6 million

d. A credit to capital stock of $49 million