NOTE: Pre-Acquisition data common to all parts is presented immediately below (unless stated otherwise). Trial Balance Accounts Cash Accounts Receivable Plant Assets, net Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings S's Book S's Fair Value Value $800,000 $800,000 5,000,000 700,000 700,000 4,000,000 750,000 600,000 4,000,000 850,000 850,000 5,000,000 950,000 950,000 450,000* 1 P's Book Value $6,000,000 3,000,000 2,000,000 1,000,000 N/A N/A 100,000 150,000 50,000 *This amount represents the totalet fair value of S (a.k.a., FMV-S). THUS use this amount when calculating Goodwill or Bargain Purchase Gain !!! PART 1: Assume that S is not dissolved and assume that P paid $655,000 cash for all of S's outstanding common stock. REQUIRED: Circle the best answer below with respect to the journal entry required on S's books, if applicable. A. NO ENTRY REQUIRED ON S's BOOKS. B. S's BOOKS ARE "PERMANENTLY" CLOSED

NOTE: Pre-Acquisition data common to all parts is presented immediately below (unless stated otherwise). *This amount represents the totalnet fair value of S (a.k.a., FMV SS). THUS use this amount when calculating Goodwill or Bargain Purchase Gain II! PART 1: Assume that S is not dissolved and assume that P paid $655,000 cash for all of S's outstanding common stock. REQUIRED: Circle the best answer below with respect to the journal entry required on S's books, if applicable. A. NO ENTRY REQUIRED ON S's BOOKS. B. S'S BOOKS ARE "PERMANENTLY" CLOSED