Parker Company purchased 100% of the outstanding common stoc…
Parker Company purchased 100% of the outstanding common stock of Sutton Company in an acquisition by issuing 20,000 shares of its $1 par value common stock that had a fair value of $10 per share. Parker also agreed to pay contingent consideration with a fair value of $10,000 on the acquisition date. In addition, Parker also incurred $15,000 in direct acquisition costs. On the acquisition date, Sutton had assets with a book value of $200,000 and a fair value of $350,000, and liabilities with a book and fair value of $70,000. Related to this acquisition, Parker will record