Question

^{Here are the trial balances for the Plenty Company
and the Scarce Company just before the books were
closed on December 31, 2019. Fair market values for
selected Scarce Company accounts are shown.
PlentyCo ScarceCo Scarceco
Trial Trial Fair Mkt
Balance Balance Values
Current assets 170,000 65,000 75,000
Noncurrent assets (net) 255,000 105,000 140,000
Liabilities (65,000) (45,000) (45,000)
Common Stock (Par) $20 (300,000)
Common Stock (Par) $40 (60,000)
Additional paid in capital (10,000) (20,000)
Retained earnings 1/1/19 (60,000) (25,000)
Revenues (110,000) (90,000)
Expenses 120,000 70,000
On December 31, 2019, Plenty Company purchased 100% of
Scarce Company's stock by issuing 4,500 shares of its own stock and
paying $100,000 cash. On that date, the market value of Plenty
Company's stock was $30 per share.
There were no combination costs or stock issuance costs.
Scarce Company was dissolved immediately after the takeover
and no longer existed independently.
Make all necessary journal entries in Plenty Company's records
to recognize this acquisition.}

Answer 1