On March 15, 2021, P Company issued 30,000 of its $5 par value common stock to acquire 10,000 shares of S company. On that date, P Companys shares had a fair value of $7 per share. P Company had to pay $136,000 as finders fees. In addition, P Company paid $25,000 to register the shares issued in the acquisition process.

In the journal entry to record the stock acquisition, P Company should: *

Debit Investment in subsidiary by $70,000 and Credit Cash by $70,000

Debit Investment in subsidiary by $70,000, Credit Common Stock by $50,000 and Credit Other Contributed Capital by $20,000

Debit Investment in subsidiary by $210,000, Credit Common Stock by $150,000 and Credit Other Contributed Capital by $60,000

None of the above

P Company should also prepare an entry to: *

Debit Professional fees expense by $25,000, Debit Other Contributed Capital by $136,000, and Credit Cash by $161,000

Debit Professional fees expense by $136,000, Debit Other Contributed Capital by $25,000, and Credit Cash by $161,000

Debit Professional Fees Expense by $136,000, Credit Other Contributed Capital by $25,000, and Debit Cash by $111,000

None of the above