Stock Acquisition Use the following to answer the five questions below On January 31, 2021, P Company acquired 90% of the outstanding common stock of S Company for $4,320,000 cash. Just before the acquisition, the balance sheets of the two companies were as follow: Cash Receivables Inventory PPE (net) P Company 5.000.000 400,000 7.000.000 7.600.000 20,000,000 10,000,000 3.600.000 2,400,000 4.000.000 20,000,000 s Company 2,250,000 180,000 3,150,000 3,420.000 9,000,000 4,500,000 1,620.000 1,080,000 1.800,000 9,000,000 Liabilities Common Stock ($20 par value) Other Contributed Capital Retained Earnings Assume that any difference between the book value of net assets and the value implied by the purchase price relates to subsidiary land. According to the CAD schedule: * The implied value exceeds the book value by $300,000, thus "Land" should be debited by $300,000 The implied value is less than the book O value by $300,000, thus "land" should be credited by $300,000 The book value exceeds the implied value by $300,000, thus "land" should be debited by $300,000 None of the above The working paper elimination entry should include: * A credit to "Investment in S and a credit to NCI by $4,320,000 and $432,000 respectively A Debit to "Common Stock" and "Other Contributed Capital" by $1,620,000 and $1,080,000 respectively A Debit to Common Stock by $1,620,000 and a Credit to "Cash by $4,320,000 None of the above The consolidated balance sheet for P and S Companies on the date of acquisition will include: * Cash $2,250,000 Cash $2,930,000 Cash $7,250,000 None of the above The consolidated balance sheet for P and S Companies on the date of acquisition will include: * Receivables $400,000 Investment in S company $-0- Difference between Implied Value & Book Value $300,000 None of the above The consolidated balance sheet for P and S Companies on the date of acquisition will include: * Liabilities $10,000,000 Common Stock $3,600,000 Other Contributed Capital $3,480,000 None of the above