/ Chapter 1 / H1 CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 P Flag question Partially correct Mark 12.28 out of 16.66 Effects of qualifying as a business on asset acquisitions Assume that on January 1, 2016 an investor company paid $5,800 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Investee's Estimated Fair Asset (Liability) Production equipment Factory Land Patents Accrued liabilities Book Value $600 3,000 200 Value $520 2,860 780 1,300 (260) 240) In addition, assume that the investor paid an additional $200 of transaction costs to a third party The book values are from the investee's financial records immediately before the exchange. The fair values are measured in accordance with FASB ASC 820: Fair Value Measurement. Parts a. and b. are independent of each other If no additional debit entries are required, select "No entry" as the answer. a. Provide the journal entry recorded by the investor company assuming that the net assets transferred from the investee do not qualify as a "business," as that term is defined in FASB ASC Master Glossary General Journal