On May 1, Todd Inc issued 30,000 shares of its common stock with a $15 par value and $50 fair value in exchange for all Saguaro Inc outstanding common stock. As a result of this acquisition Seguaro ceased to exist as a legal separate entity. On the date of the acquisition, Seguaro had net assets with a book value of $900,000 and fair market value of $1,280,000.

1. The amount of consideration transferred for this acquisition is

A. 30,000

B. 450,000

C. 1,280,000

D. 1,950,000

2.What is the journal entry to record this transaction?