What is the total cost of investment in b

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Company A. acquired all of the outstanding shares of Company B by paying $200,000 in cash, issuing a bond payable for $300,000 and issuing 10,000 common shares with a fair value of $50 each. A incurred costs of $60,000 in investigation, accounting and legal fees directly related to the acquisition. In addition, A incurred costs of $10,000 for the issue of the bonds and another $10,000 for the issue of the additional shares.

Required:

a) Prepare the journal entries in proper format necessary to record the acquisition and related costs on the books of A

b) What is the total cost of Investment in B?

Reference no: EM132621923

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