nent $2$ Chopter $20$

On December $31,$ Pacifics, Incorporated, acquired $100$ percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly awned subsidiory with its own legal and accounting identity. The consideration tronsferred to the owmer of Segutos included $60,990$ newly issued Pacifica common shores $($ $$20$ market value, $$5$ por value$)$ and an agreement to pay on odditional $$130,000$ cosh if Seguros meets certain project completion gools by December $31$ of the following yeor. Pocifict estimbtes a $50$ percent probobility that Seguros will be successful in meeting these gools ond uses $04$ percent discount rate to represent the time value of money,

Immedistely prior to the acquisition, the following doto for both firms were availsble:

In addition, Pocifico ossessed o research ond development project under way ot Seguros to hove o foir value of $$195,000.$ Although not yet recorded on its books. Pocifice poid legol fees of $$18,500$ in connection with the ocquisition and $$8,500$ in stock issue costs.

Required:

a$.$ Prepore Pocifica's journol entries to record the consideration tronsferred to the former owmers of Seguros, the direct combination costs, ond the stock issue and registration costs.

b$.$ and c$.$ Present o worksheet showing the postocquisition column of occounts for Pocifico ond the consolidated bolance sheet as of the ocquisition date.

Cemplete thle awastlon by enkerinp your ienawere in the taborbelew.

segA

Requmenc required" in bie the woosumt sell.

Journal entry worksheet

$2$

$$

$\backslash$table$[[$Hencomin$,7$ cecuma Thie,Dastr,Crastr$],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

$$

$$