Module 3 High Engagement Comprehensive Example Consolidated F-S on the Business I . . . I . . I . | On January 1. 2019, Pippen Co. issued 50,000 shares of iE $1 par value common stock [market price per share was $10J and transfer $250,000 in cash to purchase all of the outstanding shares of common stock of Scottie Co. As part of the acquisition agreement {1} Pippen contracted with the selling Scottie Co. stockholders to pay {on May 1. 2020} additional $40,000 in cash if 2019 consolidated revenue is greater than $900,000. [in Januaryr 1, 2019, the fair value of this provision is $25,000 and {2} Pip pen was obligated to replace the share based payment awards held by Scottie's employee. On January 1, 2019, Pippen issued to Scottie's employees 10,000 share options with a total fair value of $20,000. Pippen determined that 409t- of the replacement award is attributable to the ore-combination services that have already been rendered by the employees, while the remaining 150% of the replacement award is attributable services to be rendered by the employees over the next 4 yea rs. The following costs in relation to the acquisition were incurred and paid by Pippen on 1ili2019: - Printer's and underwriting fees in relation to the common stock issued of $5,000 and - Finder's and financial clue diligence fees of $?,000. The bookvalues of Scottie assets and liabilities equal their fair values except for - Inventory - fair value of $40,000 I Equipment fair value of $90,000 - Customer list fair value of $190,000 - Notes payable fair value of $80,000 Etelow are the January 1, 2019, balance sheets of Pippen Co. and Scottie Co. before all the journal entries in respect to this acquisition were recorded by Fippen. Balanmheet. Eleven Eadie Cash $400,000 $100,000 Accounts receivable 21000 125,000 Inventory 20.000 45,000 Properly and Equipment 315.000 "0,000 Customer list 100.000