Shell. company has the following account balances as of December 31,2014:

Book value Fair value: Inventory 710,000 710,000; Land 650,000 650,000; Buildings 1,070,000 1,300,000; Book value only: Common stock ($10 par) (950,000) Retained Earnings 1/1 (1,310,000) Revenue (710,000) Expenses 650,000

Blue Inc. transferred $1.5million in cash ans 13,000 shares of its newly issued $30 par value common stock (valued 80 per share) to acquire all of Shell's outstanding common stock.

Blue also agreed to pay $76,000 if revenue targets are met. The PV of that possible payment is $54,000.

Shell Co. also has another R&D Project which has reached feasibility. The market value of which is $74,000.

Shell Co. has another project that has no market value but had costs incurred of 35,000 in 2014.

A. Determine the balance for Goodwill or Gain on Purchase that would be included in December 31, 014 consolidation.

B. Prepare the journal entry to record the acquisition by Blue Company.