The information below is for P Corp (the investor) and S Corp (the investee) at the close of business for Dec 31 2017 (23 hrs 59 mins 59 secs). The traded market value at the market close for Dec 31 was $35 and $31 per share for P and S, respectively.

	Book Values			Fair Values
	P Corp	S Corp		P Corp	S Corp
Receivables and Inventories	100,000	50,000		90,000	45,000
Land	200,000	100,000		300,000	150,000
PPE (net)	225,000	100,000		250,000	130,000
Trademarks and Patents	-	-		150,000	80,000
Total Assets	525,000	250,000		790,000	405,000
Liabilities	150,000	80,000		180,000	95,000
Common Stock ($1 par)	20,000	10,000
APIC	280,000	150,000
Retained Earnings	75,000	10,000
Total Liabilities and Equity	525,000	250,000
Net Assets	375,000	170,000		610,000	310,000

REQ#1. Assume that on Jan 01 2018 (00 hrs 00 mins 01secs), P Corp. issued 9,500 new shares of its stock in exchange for all the individually identifiable assets and liabilities of S Corp. This is a business combination viewed as a 'net-asset acquisition'. Note that the financial accounting information provided above was prepared immediately before the acquisition. Provide the balances of each and every account on P's books immediately after its acquisition of S Corp.

REQ#2. Now assume that on Jan 01 2018 (00 hrs 00 mins 01secs), P Corp. issued 9,500 new shares of its stock in exchange for all the common stock of S Corp. This is a business combination viewed as a 'stock acquisition'. Note that the financial accounting information provided above was prepared immediately before the acquisition. Provide the balances of each and every account on P's books immediately after its acquisition of S Corp.

Continue to assume the business combination is a 'stock acquisition' as in REQ#2. For 2018 (2019), S Corp reported net income of $15,000 ($22,000) and paid dividends of $5,000 ($6,000). For equity method accounting, the additional depreciation on the builidings for the $30,000 difference between book value and acquisition-date fair value is $3,000 per year.

REQ#3. (a) For S Corp, calculate its total stockholder's equity on 12/31/2019. (b) For P Corp, calculate the balance of its account, Investment in S Corp (equity method), on 12/31/2019. (c.) Reconcile the difference between S's stockholder's equity and P's investment account.