Blair Company acquires all of the assets and liabilities of Tomlinson Corporation, in a transaction reported as a merger. How are the assets and liabilities of Blair and Tomlinson reported? a. Tomlinson's assets and liabilities remain at book value, and Blair's assets and liabilities are reported at fair value at the date of acquisition b. The assets and liabilities of both Blair and Tomlinson are reported at fair value at the date of acquisition c. Blair's assets and liabilities remain at book value, and Tomlinson's assets and liabilities are reported at fair value at the date of acquisition d. The assets and liabilities of both Blair and Tomlinson are reported at book value at the date o acquisition Company Y is purchased by Company X, at an acquisition cost that resulted in a $100,000 of goodwill. One of the assets acquired is a building, originally valued at $37,000 at the date of acquisition. Six months after the acquisition, it is discovered that the building was really only worth $25,000 at the date of acquisition. What entry is made to reflect this new information? a. A debit of $12,000 to Loss on Impairment b. A debit of $12,000 to Goodwill c. A credit of $12,000 to Gain from Bargain Purchase d. A debit of $100,000 to Goodwill Johnson paid a fixed consideration of $275,000 to acquire 100% of Willis Corporation in a statutory merger. In addition, Johnson also agreed to pay the shareholders of Willis $0.40 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first three years following acquisition. Johnson projects that there is a 20%(45%,35%) probability that the income from continuing operations in the first three years following acquisition is $65,000 ( $80,000,$115,000 respectively). Johnson uses a discount rate of 4%