The condensed separate and consolidated balance sheets of Parent Corporation and its subsidiary, on the date of their business combination showed plant assets of parent, subsidiary and consolidated as: $400,000, $100,000 and $530,000 respectively.The fair value of subsidiarys plant assets is:

a.

$70,000.

b.

$370,000.

c.

$430,000.

d.

$130,000.

In business combination, the combiner paid the following direct out-of-pocket costs for the business combination with combinee: Legal fees $25,000, Finders fee $35,000 and CPA firms fee for audit of combinee Companys financial statements $40,000. The journal entry for the payment of these costs includes:

a.

Debit to cash $ 100,000.

b.

Debit to paid in capital in excess of par $ 60,000.

c.

Credit to cash $ 100,000.

d.

Debit to paid in capital in excess of par $ 100,000.