X Co concluded that the fair value of H Co was $40,000 and paid that amount to acquire all of its net assets. H reported assets with a book value of $30,000 and fair value of $49,000 and liabilities with a book value and fair value of $11,500 on the date of combination. X also paid $1,500 to a search firm for legal fees and $3,500 accounting fees related to the acquisition. What amount will be recorded as expenses by X Corporation while recording its investment in H?

Select one: a. 3,500 b. 0 c. 1,500 d. 5,000

Adjustments made for consolidation statements not impact the parent general ledger

Select one: True False

Only the balance sheet is consolidated on the date of a business combination of a parent company and subsidiary

Select one: True False