On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued $204,000 in long-term liabilities and 20,200 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $30,400 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,100 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	61,000	21,000
Receivables	274,000	94,000
Inventory	365,000	145,000
Land	205,000	185,000
Buildings (net)	425,000	225,000
Equipment (net)	165,000	55,000
Accounts payable	(151,000)	(41,000)
Long-term liabilities	(434,000)	(204,000)
Common stock $1 par value	(114,000)
Common stock $20 par value		(124,000)
Additional paid-in capital	(364,000)	0
Retained earnings, 1/1/24	(432,000)	(356,000)

In Presidios appraisal of Mason, it deemed three accounts to be undervalued on the subsidiarys books: Inventory by $5,200, Land by $21,200, and Buildings by $30,600. Presidio plans to maintain Masons separate legal identity and to operate Mason as a wholly owned subsidiary.

Required:

Determine the consideration paid for Mason Company.

Determine the book value of Mason's assets.

Determine the allocation of fair value to individual assets.

Determine the total net fair value of assets.

Determine the excess of fair value over cost.

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

On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued $204,000 in long-term liabilities and 20,200 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $30,400 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,100 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: In Presidio's appraisal of Mason, it deemed three accounts to be undervalued on the subsidiary's books: Inventory by $5,200, Land by $21,200, and Buildings by $30,600. Presidio plans to maintain Mason's separate legal identity and to operate Mason as a wholly owned subsidiary. Required: a. Determine the consideration paid for Mason Company. b. Determine the book value of Mason's assets. c. Determine the allocation of fair value to individual assets. d. Determine the total net fair value of assets. e. Determine the excess of fair value over cost. f. Record the three transactions that occurred to create the business combination