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On December 31, 2020, Combinor Company issued 300,000 shares of its no par value or...

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Accounting

On December 31, 2020, Combinor Company issued 300,000 shares of its no par value or stated value common stock (current fair value $6 a share) in exchange for all the outstanding common stock of Combinee Company in a statutory merger. The journal entry for the merger includes:
a.
Credit to paid in capital $1,500,000.
b.
Debit to investment in combinee company common stock $1,500,000.
c.
Credit to common stock $1,800,000.
d.
Debit to investment in combinee company common stock $2,100,000.

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