Assume an investor purchases the business of an investee for $$44,800.$ The fair values of the individual net assets are equal to their reported book values. The investee company reports the following balance sheet on the acquisition date:

Current assets $$39,200$ Current liabilities $$28,000$

Property, plant and equipment, net $56,000$ Long$-$term liabilities $22,400$

Stockholders$$ equity $44,800$

Total assets $$95,200$ Total liabilities & equity $$95,200$

Parts a$.$ and b$.$ are independent of each other.

a$.$ Provide the journal entry if the investor pays cash and purchases the assets and assumes the liabilities of the investee company.

Debit Credit

$0$

$0$

Answer $1$

$0$

$0$

Answer $2$

$0$

$0$

Answer $3$

$0$

$0$

Answer $4$

$0$

$0$

Answer $5$

$($to record the acquisition$)$

b$.$ Provide the journal entry if the investor pays cash and purchases all of the stock of the investee$$s shareholders.

Debit Credit

$0$

$0$

Answer $6$

$0$

$0$

Answer $7$

$($to record the acquisition$)$