PC Company purchased all of the common stock of Silicon Company by issuing 2,000,000 shares...
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PC Company purchased all of the common stock of Silicon Company by issuing 2,000,000 shares of its $0.50 par value common stock, with a market value of $25/share. PC Company incurred $150,000 in registration and issuing costs, and $100,000 in consulting and legal fees, paid in cash. The book value of Silicon Company at the date of acquisition was as follows: Capital stock Retained deficit $4,000,000 (1,500,000) 400,000 $2,900,000 Accumulated other comprehensive income Total book value The carrying values of Silicon's reported assets and liabilities approximated fair value at the date of acquisition, but it has $3,000,000 in customer lists, not reported on its balance sheet. PC's journal entry to record this acquisition includes a debit to Investment in Silicon for: Select one: O A. $50,250,000 O B. $49,750,000 O C. $50,100,000 O D. $50,000,000
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