P Corporation acquired S Company through an exchange of common shares. All of S' assets and liabilities were immediately transferred to P. P Company's common stock was trading at $20 per share at the time of exchange. The following selected information is also available:

P Company. Before Acquisition After Acquisition

Par value of shares outstanding $200,000 $250,000 Additional Paid in Capital 350,000 550,000

What is the par value of P's common stock?

a. $10 b. $1 c. $4 d. $5

What is the fair value of S's net assets, if goodwill of P56,000 is recorded?

a. $306.000 b. $100.000 c. $194,000 d. $244,000

Separate Problem

On January 1, 2020 F Company acquired all identifiable net assets of S Company when the fair value of S's net assets was $116,000,000 and their carrying amount was $120,000,000. The consideration transferred comprised of $200,000,000 in cash at acquisition date plus another $60,000,000 in cash to be transferred 11 months after acquisition date if a specific profit target was met by S. At the acquisition date, there was only a low probability of the profit target being met, so the fair value of the additional consideration liability was $100,000,000. How much goodwill would be recognized in the financial statements?

a. $80,000,000 b. $144,000,000 c. $94,000,000 d. $84,000,000