Panther Company is about to acquire a 100% interest in Snake Company. Snake has identifiable net assets

Question:

Panther Company is about to acquire a 100% interest in Snake Company. Snake has identifiable net assets with book and fair values of $300,000 and $500,000, respectively. As payment, Panther will issue common stock with a fair value of $750,000. How the transaction would be recorded if the acquisition is:

a. An acquisition of net assets?

b. An acquisition of Snake’s common stock and Snake remains a separate legal entity?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...