7. Assume that ABC acquired XYZ's assets and liabilities for $2.000.000 in cash. The amounts of machinery and Bonds Payable that will be included in the balance sheet after acquisition are, respectively: a. $600,000 and $235,000 b. $600,000 and $200,000 c. $500,000 and $235,000 d. $500,000 and $200,000 8. Assume that ABC acquired XYZ's assets and liabilities for $2,000,000 in cash. As a result of this acquisition, ABC Co. should record a. Gain on acquisition of $100,000 b. Gain on acquisition of $135,000 C. Goodwill of $100,000 d. Goodwill of $135,000 9. Instead of acquiring XYZ's assets and liabilities, assume that ABC acquired 100% of XYZ's voting common stock. ABC paid for the acquisition by issuing 40,000 common shares of its own stock, with a par value of $4 per share and fair value of $50 per share. ABC also incurred acquisition costs of $55,000. Which of the following should be included in the acquisition journal entry prepared by ABC CO.? a. Credit to Additional Paid-in Capital $1840,000 b. Credit to Common Stock $2,000,000 C. Debit to Investment in XYZ $1,945,000 d. None of these 10. Still, assume that ABC acquired 100% of the stock of XYZ by issuing 40,000 common shares of ABC's own stock with a par value of $4 per share and fair value of $50 per share. Which of the following accounts of XYZ will NOT appear in the consolidated balance sheet after acquisition? a. Common Stock - XYZ b. Bonds Payable c. Machinery d. Current Assets e. All of these accounts of XYZ will appear on the consolidated balance sheet. 7. Assume that ABC acquired XYZ's assets and liabilities for $2.000.000 in cash. The amounts of machinery and Bonds Payable that will be included in the balance sheet after acquisition are, respectively: a. $600,000 and $235,000 b. $600,000 and $200,000 c. $500,000 and $235,000 d. $500,000 and $200,000 8. Assume that ABC acquired XYZ's assets and liabilities for $2,000,000 in cash. As a result of this acquisition, ABC Co. should record a. Gain on acquisition of $100,000 b. Gain on acquisition of $135,000 C. Goodwill of $100,000 d. Goodwill of $135,000 9. Instead of acquiring XYZ's assets and liabilities, assume that ABC acquired 100% of XYZ's voting common stock. ABC paid for the acquisition by issuing 40,000 common shares of its own stock, with a par value of $4 per share and fair value of $50 per share. ABC also incurred acquisition costs of $55,000. Which of the following should be included in the acquisition journal entry prepared by ABC CO.? a. Credit to Additional Paid-in Capital $1840,000 b. Credit to Common Stock $2,000,000 C. Debit to Investment in XYZ $1,945,000 d. None of these 10. Still, assume that ABC acquired 100% of the stock of XYZ by issuing 40,000 common shares of ABC's own stock with a par value of $4 per share and fair value of $50 per share. Which of the following accounts of XYZ will NOT appear in the consolidated balance sheet after acquisition? a. Common Stock - XYZ b. Bonds Payable c. Machinery d. Current Assets e. All of these accounts of XYZ will appear on the consolidated balance sheet