Sandstone Corporation nas the following account balances and respective fair values on June 30: Items Book Values Fair Values Receivables $ 100,000 $ 100,000 Patented technology Computer software In-process research and development Liabilities Common stock Additional paid-in capital 185,000 185,000 0 644,000 0 526,000 (576,000) (576,000) (100,000) 0 (300,000) 0 Retained earnings deficit, 1/1 797,000 0 (430,000) 324,000 0 0 Revenues Expenses Patriot, Incorporated, obtained all of the outstanding shares of Sandstone on June 30 by issuing 20,000 shares of common stock having a $1 par value but a $65 fair value. Patriot incurred $10,000 in stock issuance costs and paid $65,000 to an investment banking firm for its assistance in arranging the combination. In negotiating the final terms of the deal, Patriot also agrees to pay $90,000 to Sandstone's former owners if it achieves certain revenue goals in the next two years. Patriot estimates the probability adjusted present value of this contingent performance obligation at $27,000. Required: a. What is the fair value of the consideration transferred in this combination? b. How should the stock issuance costs appear in Patriot's postcombination financial statements? c. How should Patriot account for the fee paid to the investment bank? d. How does the issuance of these shares affect the stockholders' equity accounts of Patriot, the parent? e. How is the fair value of the consideration transferred in the combination allocated among the assets acquired and the liabilities assumed? h. If Patriot's stock had been worth only $40 per share rather than $65, how would the consolidation of Sandstone's assets and liabilities have been affected? Complete this question by entering your answers in the tabs below. Required A Required B Required D Required C Required E Required H How is the fair value of the consideration transferred in the combination allocated among the assets acquired and the liabilities assumed? Fair value of consideration transferred Receivables Patented technology Computer software In-process research and development Liabilities Goodwill < Required D Required H >