Reference no: EM132679292

On June 30, 2014, PC Company purchased all of the common stock of Silicon Company by issuing 100,000 shares of its $1 par value common stock, with a market value of $25/share. PC Company incurred $400,000 in registration and issuing costs, and $250,000 in consulting and legal fees, paid in cash. The book value of Silicon Company at the date of acquisition was $1,000,000, consisting of capital stock of $560,000, retained earnings of $280,000 (credit balance), treasury stock of $35,000, and accumulated other comprehensive income of $195,000 (credit balance). The carrying values of Silicon's reported assets and liabilities approximate fair value, but it has $700,000 in customer lists, not reported on its balance sheet.

Question 1: PC's journal entry to record this acquisition includes a credit to additional paid in capital?

Question 2: PC's journal entry to record this acquisition includes a debit to investment in Silicon?

Question 3: What is the Eliminating entry

Question 4: Eliminating entry a debit of goodwill are?

Question 5: What are the eliminating entries