show me how you solve it with the solution

PART TWO-OBJECTIVE QUESTIONS (30 POINTS) A) Internal Expansion (6 points Present Corporation established Surprise Company as a wholly owned subsidiary. Present reported the following balance sheet accounts immediately before and after it transferred assets and accounts payable to Surprise Company in exchange for 4,000 shares of $15 par value common stock having a FMV of $20. Amount Reported Before Transfer After Transfer $60,000 $40,000 95,000 56,000 10,000 8,000 50,000 36,000 ? 35,000 27,000 200,000 130,000 95,000 62,000 60,000 $33,000 100,000 100.000 100,000 100,000 75,000 75,000 free Account Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Investment in Scissor Co. Land Depreciable Assets Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings AC #1733 AP22 Required 1. 2. 3. Questions What was Present's book value of the total assets transferred to Surprise? | What amount should Present report as its investment in Surprise after the transfer? 890N What was the amount of change increase or decrease) in total assets of Present due to the transfer of Tilosun assets and accounts payable? 270 Auer.se What change did the transfer of assets and accounts payable have on the amount of shares outstanding in the consolidated balance sheet? No Chonse What amount did Surprise record as additional paid-in capital upon issuance of the common stock? Does internal expansion constitute a business combination? (Use Y for Yes andy for No) 4. 5. 6