On December 31, 2020, Combinor Company issued 300,000 shares of its no par value or stated value common stock (current fair value $6 a share) in exchange for all the outstanding common stock of Combinee Company in a statutory merger. The journal entry for the merger includes:

a.

Debit to investment in combinee company common stock $1,500,000.

b.

Debit to investment in combinee company common stock $2,100,000.

c.

Debit to investment in combinee company common stock $3,000,000.

d.

Debit to investment in combinee company common stock $1,800,000.

In business combination, the combiner paid direct out-of-pocket costs of the business combination, $60,000, and costs of registering and issuing its common stock, $80,000. The journal entry for payment of the above costs includes:

a.

Debit to investment in common stock of combine $60,000.

b.

Credit to investment in common stock of combine $60,000.

c.

Debit to investment in common stock of combine $140,000.

d.

Debit to investment in common stock of combine $80,000.