Answer the following:

Use the information below to answer all questions in this section. On 1/1/25 Potato Co. purchased Chip Co. for $100,000. The following is the balance sheet of Chip Co on 1/1/25: Assets Book Value Cash $6,000 Receivables $10,000 Inventories $20,000 PPE, net $14,000 Total Assets $50,000 Liabilities and Owners Equity Accounts Payable $5,000 Notes Payable $6,000 Capital Stock $15,000 Retained Earnings $24,000 Total Liabilities and OE $50,000 The fair market values of Chip Co's assets and liabilities resemble their book values at the time of acquisition, with the following exceptions: the fair market value of Chip Co's inventories on 1/1/25 was $5,000 greater than book value, the fair market value of Chip Co's net PPE on 1/1/25 was $10,000 greater than book value, and the fair market value of Chip Co.'s Trademark (internally developed) on 1/1/25 was $24,000. Question 26 (2 points) The journal entry Potato Co. will record when it purchases Mansion Co. will contain a.... debit to Accounts Payable for $6,000 credit to Accounts Payable for $5,000 debit to Accounts Payable for $5,000 no debit or credit to Accounts Payable credit to Accounts Payable for $6,000 for $6.000 Question 27 (2 points) The journal entry Potato Co. will record when it purchases Mansion Co. will contain a.... credit to Notes Payable for $5,000 debit to Notes Payable for $5,000 credit to Notes Payable for $6.000 no debit or credit to Notes Payable debit to Notes Payable for $6,000 Question 28 (2 points) The journal entry Potato Co. will record when it purchases Mansion Co. will contain: a.... no debit or credit to Cash Ocredit to Cash for $5,000 credit to Cash for $100,000 Odebit to Cash for $5,000 debit to Cash for $6,000