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PC Company purchased all of the common stock of Silicon Company by issuing 400,000 shares of its $0.10 par value common stock, with a market
PC Company purchased all of the common stock of Silicon Company by issuing 400,000 shares of its $0.10 par value common stock, with a market value of $15 share. PC Company incurred $125,000 in registration and issuing costs, and $75,000 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 $5,000,000 in developed technology, not reported on its balance sheet but meeting criteria for capitalization per ASC Topic 805. PC's journal entry to record this acquisition includes a debit to Investment in Silicon for: Select one: a. $5,960,000 b. $6,000,000 C. $5,760,000 d. $5,835,000
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