L') Cost of the investment less the subsidiary's fair var (D) Cost of the investment less the subsidiary's fair val E) No longer allowed under federal law. thent less the subsidiary's book value at the acquisition de less the subsidiary's fair value at the beginning of the year. ry's fair value at the acquisition date. 2. CPA Inc. acquired 100% of the voting common stoc MBA's accounts on that date (prior to creating the com ting common stock of MBA Inc. on January 1, 2019. The book value and fair value of to creating the combination) follow, along with the book value of CPA's accounts: MBA Fair Value Retained earnings, 01/01/19 Cash and receivables Inventory Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Book Value $350,000 170,000 230,000 280,000 480,000 120,000 550,000 260,000 120,000 MBA Book Value $240,000 70,000 170,000 220,000 240,000 90,000 430,000 80,000 40,000 $70,000 210,000 240,000 270,000 90,000 420,000 a). Assume that CPA issued 15,000 shares of common stock with a S5 par value and a $37 fair value to obtain all of MBAS outstanding stock. In this acquisition transaction, how much goodwill should be recognized? (8 points] A) B) C) D) E) $195,000 $185,000 $ 95,000 $ 20,000 $ 0 b.) Assume that CPA issued 15,000 shares of common stock with a $5 par value and a $32 fair value for all of the outstandi shares of MBA. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2019 balanc as a result of this acquisition transaction? (10 points] A) $160,000 and $590,000 B) $160,000 and $350,000 C) $480,000 and $350,000 D) $525,000 and $350,000 E) $525,000 and $444,000