The stockholders equities of Riyadh Corporation and Jeddah Corporation at January 1 were as follows:

Particulars	Riyadh	Jeddah
Capital stock, $10 par	3,000,000	1,600,000
Other paid-in capital	400,000	800,000
Retained earnings	1,200,000	600,000
Stockholders equity	4,600,000	3,000,000

Additional Information:

1- On January 2, Riyadh issued 300,000 of its shares with a market value of $20 per share for all of Jeddahs shares, and Jeddah was dissolved.

The journal entry to record the acquisition

A.

B

Investment in Jeddah Capital stock, $10 par Other paid-in capital

6,000,000

3,000,000 3,000,000

B.

D

Investment in Jeddah To cash

6,000,000

6,000,000

C.

C

Cash Capital stock, $10 par Other paid-in capital

6,000,000

3,000,000 3,000,000

D.

	Questions	Dr	Cr
A	Investment in Jeddah Capital stock, $20 par	6,000,000	6,000,000