On 1/1/2021 Shack Co. purchased Mansion Co. for $5,000,000. The following is the balance sheet of Mansion Co on 1/1/2021:

	Cash	$800,000
	Receivables	$960,000
	Inventories	$818,000
	PPE, net	$1,000,000
Total Assets		$3,578,000
	Accounts Payable	$600,000
	Notes Payable	$500,000
	Capital Stock	$1,000,000
	Retained Earnings	$1478,000
Total Liabilities and OE		$3,578,000

The fair market values of Mansion Co.s assets and liabilities resemble their book values at the time of acquisition, with the following exceptions: the book value of Mansions inventories was overvalued by $18,000, and the book value of Mansions PPE was undervalued by $100,000. Further, the fair market value of Mansion Co.s trade name, which was internally developed, was $900,000.

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The journal entry Shack Co. will record when it purchases Mansion Co. will contain a....

Question 11 options:

	credit to Accounts Payable for $650,000
	no debit or credit to Accounts Payable
	credit to Accounts Payable for $600,000
	debit to Accounts Payable for $650,000
	debit to Accounts Payable for $600,000