Assume that Watson issued 13,000 shares of common stock, with a $5 par value and a $46 fair value, to obtain all of Gomess outstanding stock.

1. In this acquisition transaction, how much goodwill should be recognized? 2. What is the consolidated balance for Land as a result of the acquisition transaction?

3. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances) as a result of this acquisition?

4. Assuming Watson issued preferred stock with a par value of $260,000 and a fair value of $500,000 for all the outstanding shares of Gomes in an acquisition business combination. What will be the balance in the consolidated Inventory and Land accounts?

5. Assume that Watson paid a total of $500,000 in cash for all the shares of Gomes. In addition, Watson paid $42,000 for secretarial and management time allocated to the acquisition transaction. What will be the balance in consolidated goodwill?

Watson Inc. acquired 100% of the voting common stock of Gomes Inc. on January 1, 2021. The book value and fair value of Gomes's accounts on that date (prior to creating the combination) are as follows, along with the book value of Watson's accounts: Gomes Watson Book Value Book Gomes Fair Value Value Retained earnings, 1/1/21 $ 250,000 $ 240,000 Cash and receivables 170,000 70,000 $ 70,000 Inventory 230,000 180,000 210,000 Land 320,000 220,000 240,000 Buildings (net) 480,000 240,000 280,000 Equipment (net) 120,000 90,000 90,000 Liabilities 650,000 440,000 430,000 Common stock 360,000 80,000 Additional paid-in capital 60,000 40,000 Assume that Watson issued 13,000 shares of common stock, with a $5 par value and a $46 fair value, to obtain all of Gomes's outstanding stock. 1. In this acquisition transaction, how much goodwill should be recognized? 2. What is the consolidated balance for Land as a result of the acquisition transaction? 3. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances) as a result of this acquisition? 4. Assuming Watson issued preferred stock with a par value of $260,000 and a fair value of $500,000 for all the outstanding shares of Gomes in an acquisition business combination. What will be the balance in the consolidated Inventory and Land accounts? 5. Assume that Watson paid a total of $500,000 in cash for all the shares of Gomes. In addition, Watson paid $42,000 for secretarial and management time allocated to the acquisition transaction. What will be the balance in consolidated goodwill