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PC Company purchased all of the common stock of Silicon Company by issuing 2,000,000 shares of its $1 par value common stock, with a market
PC Company purchased all of the common stock of Silicon Company by issuing 2,000,000 shares of its $1 par value common stock, with a market value of $20/ share. PC Company incurred $100,000 in registration and issuing costs, and $150,000 in consulting and legal fees, paid in cash. The book value of Silicon Company at the date of acquisition was as follows: The carrying values of Silicon's reported assets and liabilities approximated fair value at the date of acquisition, but it has $1,000,000 in customer lists, not reported on its balance sheet. PC's journal entry to record this acquisition includes a credit to additional paid-in capital for: PC's journal entry to record this acquisition includes a debit to Investment in Silicon for: PC's journal entry to record this acquisition includes a credit to Cash for: Eliminating entry (E) includes a credit to Investment in Silicon for: Eliminating entry (R) includes a debit to goodwill for: Eliminating entry (R) includes a credit to Investment in Silicon for: PC Company purchased all of the common stock of Silicon Company by issuing 2,000,000 shares of its $1 par value common stock, with a market value of $20/ share. PC Company incurred $100,000 in registration and issuing costs, and $150,000 in consulting and legal fees, paid in cash. The book value of Silicon Company at the date of acquisition was as follows: The carrying values of Silicon's reported assets and liabilities approximated fair value at the date of acquisition, but it has $1,000,000 in customer lists, not reported on its balance sheet. PC's journal entry to record this acquisition includes a credit to additional paid-in capital for: PC's journal entry to record this acquisition includes a debit to Investment in Silicon for: PC's journal entry to record this acquisition includes a credit to Cash for: Eliminating entry (E) includes a credit to Investment in Silicon for: Eliminating entry (R) includes a debit to goodwill for: Eliminating entry (R) includes a credit to Investment in Silicon for
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