On January $1,20$X$4,$ Acme Corporation acquired $100\%$ of the outstanding common stock of Coyote, a foreign company $($amounts translated to USE$).$ To acquire these shares, Acme's appraisal of Coyote's fair values deemed three

accounts to be undervalued: Inventory by $$5,000,$ Land by

$$20,000,$ and Buildings by $$30,000.$ Acme plans to maintain

Coyote's separate legal identity and to operate Coyote as a

wholly owned subsidiary.

Prepare Acme's journal entries to record its acquisition of

Coyote, related professional fees paid, and stock acquisition

costs.

Journal entry for investment in Coyote

Journal entry for payment of professional

Debit

Credit

Journal entry to record payment of stock

Debit

Credit Separately determine each individual amount that Acme

Acme issued to the owners of Coyote $$200,000$ in long$-$term liabilities and $20,000$ shares of common stock having a par value of $$1$ per share but a fair value of $$20$ per

share. Acme paid $$30,000$ to accountants, lawyers, and brokers for assistance in the acquisition and another $$12,000$ in connection with stock issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows:

Create journal entries identifying consolidations and investments