The condensed separate and consolidated balance sheets of Parent Corporation and its subsidiary, on the date of their business combination showed inventories of parent, subsidiary and consolidated as: $400,000, $100,000 and $380,000 respectively.This means:

a.

Excess of fair value of subsidiarys inventory over its carrying amount by $20,000.

b.

Excess of carrying amount of subsidiarys inventory over its fair value by $20,000.

c.

Excess of carrying amount of parents inventory over its fair value by $20,000.

d.

Excess of fair value of parents inventory over its carrying amount by $20,000.

On January 31, 2020, Combinor Company issued $900,000 face amount of 9%, 10-year bonds due January 31, 2030, with a present value of $965,423 at a 8% yield, to Combinee Company for its net assets. The journal entry for the merger includes:

a.

Debit to investment in combinee net assets $ 834,577.

b.

Credit to premium on bonds payable $65,423.

c.

Credit to discount on bonds payable $65,423.

d.

Debit to investment in combinee net assets $900,000.