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On December 31, Planet Company acquired 80% of the voting common stock of Star Company by issuing 100,000 shares of its own common stock (fair
On December 31, Planet Company acquired 80% of the voting common stock of Star Company by issuing 100,000 shares of its own common stock (fair value $8/share). In the acquisition, Planet paid legal fees in the amount of $15,000 and paid SEC registration fees of $10,000. The book value of Star on December 31 was $700,000. Star's only balance sheet item with a fair value different from book value was a building. The building had a book value of $100,000 and a fair value of $150,000. In Planet's December 31 consolidating work paper elimination entry, "Building" is debited for: O $50,000 O $65,000 O $215,000 $250,000
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