Assume an investor purchases an investees net assets with a cash payment of $1,200 and issuance to the investees shareholders of 240 shares of $1 par value common stock with a current fair value of $28.50 per share. In addition, we assume the purchaser paid an additional $60 of transaction costs to a third party (e.g., appraiser or broker) and provided the seller with contingent consideration with a fair value of $240 at the date of acquisition. The investee has the following net assets at current appraised fair value and historical book value:

	investee fair value	investee book value
plant and equipment	900	480
land	1260	900
patent	1440	120
total	3600	1500

a. Provide the journal entry on the investors books for the purchase of the individual net assets of the investee. Assume the acquired net assets do not qualify as a business.

b. Provide the journal entry on the investors books for the purchase of the individual net assets of the investee. Assume the acquired net assets qualify as a business.

c. Provide the journal entry on the investors books for the purchase of the investees business, assuming that the investor purchases the investee as a stock purchase.