Man merged with San Corporation in a business combination in which San issued 30,000 shares of its no par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The journal entry for the merger includes:

a.

Debit to common stock $ 600,000.

b.

Credit to common stock $ 600,000.

c.

Debit to paid in capital in excess of par $ 600,000.

d.

Credit to paid in capital in excess of par $ 600,000.

On May 31, 2020, the current fair values and carrying amounts of Subsidiarys assets and liabilities were equal. Assume that current liabilities amount of the parent company and its subsidiary were $ 350,000 and $ 180,000 respectively. In a consolidated balance sheet of the parent and its subsidiary liabilities amount to be recorded as:

a.

$180,000.

b.

$350,000.

c.

$170,000.

d.

$530,000.