Alpha Corporation acquires all of the assets and assumes all of the liabilities of Beta Company in a merger. Alpha finances the acquisition by issuing 14'000 new shares of its 10 par value common stock and distributing it to the Beta shareholders. The share issue has a total market value of 840'000. Related to the combination, Alpha incurs legal and appraisal fees of 51'000 and stock issue costs of 36'000. At the date of acquisition, Beta Company reported the following balances (all amounts in ). Balance Sheet Cash and Receivables Inventory Land Buildings and Equipment Less: Accumulated Depreciation Patent Carrying amount Fair Value 105'000 105'000 80'000 120'000 97000 142'000 475'000 415'000 (115000) 100 000 Total Assets 642'000 882'000 187'000 Current Liabilities Common Stock Additional Paid-In Capital Retained Earnings 162000 170000 65000 245000 642000 Total Liabilities and Equities Fair Value of net Assets 695'000 Required Prepare all journal entries on Alpha's books to record the business combination under: a. The acquisition method. b. The purchase method. C. The pooling-of-interests method. 1 Alpha Corporation acquires all of the assets and assumes all of the liabilities of Beta Company in a merger. Alpha finances the acquisition by issuing 14'000 new shares of its 10 par value common stock and distributing it to the Beta shareholders. The share issue has a total market value of 840'000. Related to the combination, Alpha incurs legal and appraisal fees of 51'000 and stock issue costs of 36'000. At the date of acquisition, Beta Company reported the following balances (all amounts in ). Balance Sheet Cash and Receivables Inventory Land Buildings and Equipment Less: Accumulated Depreciation Patent Carrying amount Fair Value 105'000 105'000 80'000 120'000 97000 142'000 475'000 415'000 (115000) 100 000 Total Assets 642'000 882'000 187'000 Current Liabilities Common Stock Additional Paid-In Capital Retained Earnings 162000 170000 65000 245000 642000 Total Liabilities and Equities Fair Value of net Assets 695'000 Required Prepare all journal entries on Alpha's books to record the business combination under: a. The acquisition method. b. The purchase method. C. The pooling-of-interests method. 1