Question
Healthy cereal company acquired 100% of grain mills inc outstanding stock on june 30 by exchanging 250,000 shares of common stock (par value $2) with
Healthy cereal company acquired 100% of grain mills inc outstanding stock on june 30 by exchanging 250,000 shares of common stock (par value $2) with a fair (market) value 6,250,000 in that date. To finalize the transaction healthy paid 75,000 in stock registration fees and 50,000 in legal fees. based on the above which account below does not properly reflect the amount that would be recognized in the journal entry made by healthy to record the acquisition and associated fees?
A. Cash cr 125000
B. Additional paid in capital cr 5,750,000
C. Iinvestment in subsidiary deb 6,250,000
D. Ccommon stock cr 500,000
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