P Company issued 24,000 shares of its $20 par value common stock for the net assets of S Company in business combination under which S Company will be merged into P Company. On the date of the combination, P Company common stock had a fair value of $30 per share. Balance sheets for P Company and S Company immediately prior to the combination were as follows: P Co. s Co. Current Assets Plant and Equipment (net) Total $1,314,000 1.725,000 $3,039,000 $192,000 408,000 $600,000 Liabilities Common Stock, $20 par value Other Contributed Capital Retained Earnings Total $ 900,000 1,650,000 218,000 271.000 $3,039,000 $150,000 240,000 60,000 150.000 $600,000 Choose the correct answer: If the business combination is treated as an acquisition and the fair value of S Company's current assets is $270.000, its plant and equipment is $726,000, and its liabilities are $168,000, P Company's financial statements immediately after the combination will include Gain on acquisition of $108,000. Gain on acquisition of $54,000. Plant and equipment of $2,450,000 Goodwill of $108,000 If the business combination is treated as an acquisition and P Company issued 24,000 shares of its $20 par value common stock for the net assets of S Company assuming that fair value of net assets is $650,000. If goodwill value was $100.000 at acquisition, P Company's balance sheet immediately after the combination will include other contributed capital of: $558,000 $538,000 $1,156,000 $488,000