Carrying Amounts Current Fair Value

Current Assets $ 500,000 $ 560,000

Plant Assets (Net) 1,000,000 1,200,000

Other Assets 300,000 370,000

Total Assets $1,800,000

Current Liabilities $ 300,000 $ 300,000

Long Term Debt 400,000 440,000

Common Stock $1 par 520,000

Additional Paid in Capital 200,000

Retained Earnings 400,000

Total Liabilities and Stockholders Equity $1,800,000

On February 28, 20X5, Bragg Corporation issued 600,000 shares of its $1 par common stock (current fair value $ 4a share to the stockholders of the Nestor for the purchase of all of Nestors shares. The only fees involved were $9,000 paid to a lawyer. The fees were not connected to the stock registration.

Prepare the journal entries to record the business combination

Goodwill calculation: