Rivendell Corporation and Foster Company merged as of January 1, 20X9. To effect the merger, Rivendell paid finder's fees of $40,000, legal fees of $13,000, audit fees related to the stock issuance of $10,000, stock registration fees of $5,000, and stock listing application fees of $4,000.

This is a 4 part question Which means 4 Answers

1. Based on the preceding information, under the acquisition method, what amount relating to the business combination would be expensed?

$72,000

$19,000

$53,000

$63,000

2.

Based on the preceding information, under the acquisition method:

$72,000 of stock issue costs are treated as goodwill.

$19,000 of stock issue costs are treated as a reduction in the issue price.

$19,000 of stock issue costs are expensed.

$72,000 of stock issue costs are expensed.

3.

Using the preceding information, what amount would have been expensed if the purchase method of accounting was used?

$0

$19,000

$53,000

$72,000

4.

Using the preceding information, what amount would have been expensed if the pooling-of-interests method of accounting was used?

$0

$19,000

$53,000

$72,000

This is a 4 part question Which means 4 Answers