POINTS) Select the correct answer THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 4. Ox, Dec., 20, 2013, A (the investee) was merged into B. B issued 80,000 shares of its $10 par and $22 FMV per share to A stockholders for all issued and outstanding shares. The direct costs $240,000. Prior to the merger A balance sheet was (6 POINTS) Lia & Stockholders Assets Cost FMV Jequity Cost FMV Current assets 500000 $75,000 Long term liabilities 750000 750000 Plant assets 1,800,000 2,000,000 Common stocks, Sl par 500,000 Paid in capital 350,000 Retained Earnings 700,000 1- The stock investment account will be debited by in the books of B. A $2,000,000 C$1,040,000 B $1,760,000 D $2,200,000 2- The paid in capital account will increase by in the books of B. A $720,000 CS1,200,000 B S960,000 D $800,000 3- The amount of goodwill is- A $2,000,000 $175,000 BS1,825,000 D 5800,000