Advanced accounting exercise

explain the answer in an easy and understand way

The stockholders' equity of the Mountain Corporation at December 31, 2014, was $390,000, consisting of the following (in thousands): Capital stock, 510 par, (25,000 shares outstanding) S 250 Additional paid-in capital 5 50 Retained earnings S 90 Total stockholders' equity l S 390 On April 1, 2015, Mountain Corporation, sold 15,000 shares of previously unissued stock to the sky Corporation for $375,000. All of Mountain identifiable assets and liabilities were recorded at fair values on this date except for 3 Cars with a 3-year remaining useful life that was undervalued by $40,000. During 2015, Mountain Corporation reported net income of $120,000 and paid dividends of $100,000. REQUIRED: 1. Calculate Stockholders' equity after issuance on On April 1, 2015 2. Calculate Excess fair value over book value. 3. Calculate the excess is allocated on cars. 4. Prepare all journal entries necessary for y Corporation to account for its investment in Mountain for 2015