On Jan 1, 2013 Palmer Company exchanged 10, 000 shares of its $50 par value common stock for all the outstanding stock of Smith Company in a stock acquisition. Palmer incurred $15,000 of legal fees associated with the combination and $20,000 of stock issued costs. At the date of combination, the following information was available: Market value of Palmer's shares: $85 per share FMV of Smith's net identifiable assets: $800,000 Smith's stockholder's equity section of its balance sheet st time of acquisition:
Common stock $10 par $200,000
Additional Paid In Capital 100,000
Retained Earnings 400,000
Merger expenses equals?
The excess of the fair market value of the net identifiable assets of the Smith company over its book value equals?
The goodwill equals?
Prepare journal entries for the above transactrions