Effects of qualifying as a business on asset acquisitions Assume that on January 1, 2016 an investor company paid $5,800 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Asset (Liability) Investee's Book Value Estimated Fair Value Production equipment $600 $520 Factory 3,000 2,860 Land 200 780 Patents - 1,300 Accrued liabilities (240) (260) In addition, assume that the investor paid an additional $200 of transaction costs to a third party. The book values are from the investees financial records immediately before the exchange. The fair values are measured in accordance with FASB ASC 820: Fair Value Measurement. Parts a. and b. are independent of each other. If no additional debit entries are required, select "No entry" as the answer. a. Provide the journal entry recorded by the investor company assuming that the net assets transferred from the investee do not qualify as a business, as that term is defined in FASB ASC Master Glossary. General Journal Description Debit Credit Production equipment Answer 600 Answer Factory Answer Answer Land Answer Answer Patents Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Cash Answer Answer b. Provide the journal entry recorded by the investor company assuming that the net assets transferred from the investee qualify as a business, as that term is defined in FASB ASC Master Glossary. General Journal Description Debit Credit Production equipment Answer Answer Factory Answer Answer Land Answer Answer Patents Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Cash Answer Answer