Select the correct answer THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 4. On, 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) Assets Cost FMV Lia & Stockholders equity Cost FMV Current assets 500000 575,000 Long term liabilities 750000 750000 Plant assets 1,800,000 2,000,000 Common stocks, $1 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 C $1,200,000 B $960,000 D $800,000 3 The amount of goodwill is. A $2,000,000 C $175,000 B $1,825,000 D $800,000 4Company A A Will be survived C Will be a subsidiary of B B Will go out from existence D A & B will go out from existence.