Template Post Problem $1$ Statutory Merger

SEC Registration Fee $20,000$ stock issue

SEC Registration legal fees $20,000$ stock issue

Finder's fee $6,000$ merger Carl Corporation General Ledger Carl Corporation

Merger legal fees $2,000$ merger Balance Sheet

Merger accounting fees $4,000$ merger Cash Plant Liabilities Assets Liabilities and Equity

$52,00080,000300,00080,000$ Cash Liabilities

Accts. Rec.

Inventory Capital Stock

Plant Paid in capital

Merger Expense $6,000$ Land Retained earnings

Cash $6,000$ Goodwill

Accounts Receivable Land Capital Stock Total Total

Paid in Capital $20,00010,000$

Cash

Investment in Lin Company

Common Stock Inventory Investment in Lin Co$.$ Paid in Capital

Paid in Capital $80,00020,000190,000$

$020,000$

Cash

Accounts receivable Goodwill

Plant Merger Expense Retained Earnings

Goodwill $6,000200,000$

Liabilities

Investment in Lin Co$.$

Computation of Goodwill

Fair Value of Consideration

transferred

Book value of Lin Co$.$

Excess fair value over book

Allocated to plant

Goodwill $30,000$