On January $1,2024,$ Presidlo Company acquired $100$ percent of the outstanding common stock of Mason Company. To

acquire these shares, Presidio Issued to the owners of Mason $$329,000$ in long$-$term llabilities and $20,000$ shares of

common stock having a par value of $$1$ per share but a falr value of $$10$ per share. Presidlo pald $$32,500$ to

points

accountants, lawyers, and brokers for assistance in the acquisition and another $$17,000$ in connection with stock

Issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows:

Note: Parentheses indicate a credit balance.

Presidlo's appraisal of Mason's fair values deemed three accounts to be undervalued: Inventory by $$5,300,$ Land by

$$33,400,$ and Bulldings by $$34,000.$ Presidlo plans to maintain Mason's separate legal identity and to operate Mason as

a wholly owned subsidlary.

Required:

a$.$ Prepare Presidlo's journal entries to record its acquisition of Mason, related professional fees paid, and stock

acquisition costs.

b$.$ Separately determine each indlvidual amount that Presidio Company would report in Its consolidated balance sheet

following the acquisition of Mason. Include in Presidlo's retained earnings any adjustments to income accounts from

part $($a$)-$

c$.$ To verify the answers found in part $($b$),$ adjust Presidlo's column of accounts for the journal entries in part $($a$)$ and then

prepare a worksheet to consolidate the balance sheets of these two companies at the acqulsition date.

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Required Required Required$]]$

A

B

C

Prepare Presidio's journal entries to record its acquisition of Mason, related professional fees paid,

and stock acquisition costs.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first

account field.

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Journal entry worksheet

Record the acquisition of Mason Company.

Note: Enter debits before credits.