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First question: On Dec 31,2018 (A) paid JD10000 and issued 20000 JD1 par value common stock , fair value JD1.5 for 90% of the net
First question: On Dec 31,2018 (A) paid JD10000 and issued 20000 JD1 par value common stock , fair value JD1.5 for 90% of the net assets of (B). Out-of-pockets costs of the business combination paid by (A) are consisted of legal and accounting fees JD3000 and JD2000 for issuance common stocks. Stockholders equity of (A) and (B) at the date of acquisition are as follows: Explanations (A) (B) Common stock 30000 25000 Paid-in-capital 13000 15000 Retained earnings 25000 10000 The value of carrying assets and liabilities of (B) at purchase date equal to their fair values except for inventory that increased by 5000 and payables decreased by 2000. 1. The cost of investment in (B) is: 2. Goodwill that will be recorded in (A's) journal will be
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