Thorn Company acquires Underbrush Company for 2,000,000 shares of $0.50 par common stock with a market price

Question:

Thorn Company acquires Underbrush Company for 2,000,000 shares of $0.50 par with a market price of $l5/share. Underbrush has the following assets and liabilities reported on its at the date of acquisition:

Following are previously unreported assets identified as belonging to Underbrush:
Contracts under negotiation with potential customers ........................$ 5,000,000
In-process research & development................................................2,500,000
Patent rights...........................................................................3,000,000
Skilled workforce ...................................................................10,000,000
Required
Prepare the journal entry to record the acquisition on Thorn's books, as a statutory merger.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...