The stockholder's equity of Acme Corporation at December 31,2010 consisted of the

following:

Common stock $10 par 24,000 shares outstanding$ 240,000

Additional paid in capital80,000

Retained Earnings60,000

The Company has been in a tight working capital position and at October 1 sold 16,000

previously unissued common stock to Bugs Corporation for $ 320,000. All of Acme's

assts and liabilities were recorded at fair value at this date except for building with

remaining useful life of 5 years that was undervalued by $ 60,000 and equipment with

resuming useful life of 10 years that was overvalued by $ 20,000

During 2011 Acme reported net income of $ 180,000 and paid dividends Mar 31 of

$20,000, June 30 of $20,000; Sept 30 of $ 10,000 and Dec 31 of $ 10,000 for a total of

$ 60,000 for the year

Required:

1)Record the entry by Acme corporation on the issue of the shares to Bugs Oct 1 (2 pts)

2)Record the entries to record the dividends paid every quarter (4 pts)

3)Record any other entry or entries necessary by Acme at year end Dec 31, 2011

(2 pts)

What is the net assets of Acme Corporation at Dec 31, 2011? (4pts)