Number 24

3. The following book and fair values were available for Beech Company as of June 1: Alder Company pays $3,900,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $25,000, and Alder pays $42,000 for legal fees to complete the transaction. Prepare Alder's journal entries to record its acquisition of Beech. 4. Use the same facts as in Problem 23, but assume instead that Alder pays cash of $4,200,000 to acquire Beech. No stock is issued. Prepare Alder's journal entries to record its acquisition of Beech