Holmes Inc. acquired 100% of the voting common stock of Lynch Inc. on December 31, 2020. The book value and fair value of Lynch's accounts on that date are following. Credit balances are indicated by parentheses.Lynch remains as a separate legal entity after acquisition.

Book value Fair value

Current assets 400,000 400,000

Land 420,000 480,000

Buildings (20-year useful 500,000 500,000

life)

Equipment (10-year useful 120,000 200,000

life)

Liabilities (700,000) (700,000)

Common

stock (200,000)

Additional paid-in

capital (100,000)

Retained earnings(440,000)

Assume that Holmes issued 50,000 shares of common stock with a $5 par value and a $20 fair value for all of the outstanding stock of Lynch. In addition, Holmes agreed to pay the shareholders of Lynch another $120,000 if Lynch's earnings exceed $50,000 next year. The estimated probability of this payment is 50% and we assume a present value factor of 0.975 for one year. Holmes also paid $8,000 legal fees and $3,000 stock issuance fees for this acquisition.

Holmes Holmes* Consolidated

Pre-acquisition Post-acquisition Lynch Totals

Income

Statement

Revenues (1,000,000)

Expense 850,000 ?

Net income (150,000) ?

Statement

of

Retained

Earnings

Retained Earnings, 1/1 (870,000)

Net income (above) (150,000)

Dividends declared 110,000

Retained earnings, 12/31 (910,000)

Balance Sheet

Current assets 800,000 400,000

Investment in Lynch ? ?

Land 660,000 420,000

Buildings 1,500,000 500,000

Equipment 900,000 120,000 ?

Goodwill 200,000 ?

Total assets 4,060,000 1,440,000

Notes payable (450,000) (700,000)

Contingent performance ?

liability

Common stock (1,620,000) ? (200,000) ?

Additional paid-in (1,080,000) ? (100,000)

capital

Retained earnings, 12/31 (910,000) (440,000)

Total liabilities and equities (4,060,000) (1,440,000)

What is Common stock in post-acquisition column for Holmes?