QUESTION 1 Internet Corporation is considering the acquisition of Homepage Corporation and has obtained the following audited condensed balance sheet: Current assets Land Buildings (net) Equipment (net) Current assets Land Buildings (net) Equipment (net) Current Liabilities Assets 3. Homepage Corporation Balance Sheet December 31, 2016 b. $ 40,000 20,000 80,000 60.000 $200,000 Liabilities and Equity Internet also acquired the following fair values for Homepage's assets and liabilities: Current Liabilities Capital Stock (50,000 shares, $1 par value) Other Paid-in Capital Retained Earnings $ 60,000 Internet and Homepage agree on a price of $280,000 for Homepage's net assets. Prepare the necessary journal entry to record the purchase given the following scenarios: Internet pays cash for Homepage Corporation and incurs $5,000 of acquisition costs. 50,000 20,000 70,000 $200,000 $ 55,000 60,000 90,000 75,000 (60,000) $220,000 Internet issues its $5 par value stock as consideration. The fair value of the stock at the acquisition date is $50 per share. Additionally, Internet incurs $5,000 of security issuance costs. 10 points Saved