On January 31, 2020, Combinor Company issued $900,000 face amount of 9%, 10-year bonds due January 31, 2030, with a present value of $965,423 at a 8% yield, to Combinee Company for its net assets. The journal entry for the merger includes:

a.

Credit to bonds payable $900,000.

b.

Debit to premium on bonds payable $65,423.

c.

Credit to discount on bonds payable $65,423.

d.

Credit to cash $ 834,577.

The condensed separate and consolidated balance sheets of Alpha Corporation and its subsidiary, Bita Company, on the date of their business combination, includes inventories of Alpha $150,000, inventories of Bita $120,000 and inventories consolidated $250,000. The fair value of Alpha inventories is:

a.

$150,000.

b.

$270,000.

c.

$120,000.

d.

$250,000.