On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued $208,000 in long-term liabilities and 20,400 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $30,800 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,200 in connection with stock issuance costs. Amounts with credit balances are shown with parenthesis. Prior to these transactions, the balance sheets for the two companies were as follows: Account Presidio Mason Cash 62,000 22,000 Receivables 278,000 98,000 Inventory 370,000 150,000 Land 210,000 190,000 Buildings (net) 430,000 230,000 Equipment (net) 170,000 60,000 Accounts payable (152,000) (42,000) Long-term liabilities (438,000) (208,000) Common stock $1 par value (118,000) Common stock $20 par value (128,000) Additional paid-in capital (368,000) 0 Retained earnings, 1/1/24 (444,000) (372,000) In Presidios appraisal of Mason, it deemed three accounts to be undervalued on the subsidiarys books: Inventory by $5,400, Land by $22,400, and Buildings by $31,200. Presidio plans to maintain Masons separate legal identity and to operate Mason as a wholly owned subsidiary.

Required:

1. Determine the consideration paid for Mason Company.

2. Determine the book value of Mason's assets.

3. Determine the allocation of fair value to individual assets.

4. Determine the total net fair value of assets.

5. Determine the excess of fair value over cost.

6. Record the three transactions that occurred to create the business combination.