Arin and Boline are partners of Arin & Boline LLP have capital account balances of $120,000 and$80,000, respectively, and they share net income and losses in a 75% : 25% ratio. Colin invests $70,000 for a one-third. The capital balance of Arin after Colins admission is:

Select one:

a. $105,000.

b. $85,000.

c. $90,000.

d. $135,000

Man merged with San Corporation in a business combination in which San issued 30,000 shares of its no par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The journal entry for the merger includes:

a. Credit to paid in capital in excess of par $ 600,000.

b. Debit to common stock $ 600,000.

c. Debit to paid in capital in excess of par $ 600,000.

d. Credit to common stock $ 600,000.