On January 1, 2014, Myna Corporation issued 10,000 shares of its own $10 par value common stock for 9,000 shares of the outstanding stock of Berry Corporation in an acquisition. Myna common stock at January 1, 2014 was selling at $70 per share. Just before the business combination, balance sheet information of the two corporations was as follows:

Prepare the journal entry on Myna Corporation's books to account for the investment in Berry Company.

Transcribed Image Text:

Myna Berry Berry Book Book Fair Value Value Value $25,000 $12,000 $12,000 Cash Inventories 55,000 110,000 100,000 32,000 90,000 30,000 250,000 $414,000 36,000 110,000 90,000 375,000 $623,000 Other current assets Land Plant and equipment-net 660,000 $950,000 $220,000 $50,000 $50,000 Liabilities Capital stock, $10 par value Additional paid-in capital Retained earnings 500,000 170,000 60,000 $950,000 100,000 40,000 224,000 $414,000