"P Corporation purchased the net assets of S Corporation on January 2, 2011 for $600,000. Fair values agree with book values except for inventory, land, and equipment, which have fair values of $400,000, $70,000 and $50,000, respectively. S Co. has patent rights valued at $30,000. S Co. balance sheet on January 1, 2011 was as follows: Accounts receivable-net $ 180,000 Inventory 360,000 Land 40,000 Building.net 60,000 Equipment-net 80,000 Total assets $ 720,000 Current liabilities Long term debt Common stock ($1 par) Paid-in capital Retained earnings Total liab. & equity $ 70,000 160,000 20,000 430,000 40,000 $ 720,000 Choose the correct answer: The general journal of the acquisition must include: * Credit Gain on Acquisition by $40,000 Debit Goodwill by $5,000 Credit Gain on Acquisition by $5,000 Debit Goodwill by $40,000 The general journal of the acquisition must include: * Debit Inventory by $360,000 Credit Land by $50,000 Debit Longterm Debt by $160,000 Debit Equipment by $50,000 Assume the purchase price will be $450,000, The general journal of the acquisition must include: * Debit Goodwill by $60,000 Credit Gain on Acquisition by $60,000 Debit Goodwill by $110,000 Credit Gain on Acquisition by $110,000