Corporate account

Question One: Putney Inc. acquired 100% of the outstanding common stock of Shad Inc. for OMR2.500.000 cash and 15,000 shares of its common stock (OMR2 par value). The stock's market value was OMR40 on the acquisition date. In addition, Putney Inc, incurred the following direct costs: OMR Accounting fees for the purchase 15,000 Legal fees for registering the common stock 30,000 Other legal fees for the acquisition 45,000 Travel expenses to meet with Shad managers 5,000 SEC filing fees 2.000 97.000 Before the acquisition consummation date, OMR90,000 of the direct costs was charged to a deferred charges account pending the completion of the acquisition. The remaining OMR7.000 has not been accrued or paid. Required: a. Prepare the journal entry to record the acquisition (5 marks) b. Prepare the journal entry to record both the acquisition and the direct costs