The following book and fair values were available for westmont company as of march 1. book value fair value inventory $ 281,500 $ 250,000 land 805,500 1,112,250 buildings 2,070,000 2,416,500 customer relationships 0 870,000 accounts payable (82,500 ) (82,500 ) common stock (2,000,000 ) additional paid-in capital (500,000 ) retained earnings 1/1 (421,500 ) revenues (446,000 ) expenses 293,000 arturo company pays $3,960,000 cash and issues 29,500 shares of its $2 par value common stock (fair value of $50 per share) for all of westmont’s common stock in a merger, after which westmont will cease to exist as a separate entity. stock issue costs amount to $29,400 and arturo pays $50,000 for legal fees to complete the transaction. prepare arturo’s journal entry to record its acquisition of westmont.

In year 1, the bennetts' 25-year-old daughter, jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. in previous years, jane has never worked and her parents have always been able to claim her as a dependent. in year 1, a kind neighbor offers to pay for all of jane's educational and living expenses. which of the following statements is most accurate regarding whether jane's parents would be allowed to claim an exemption for jane in year 1 assuming the neighbor pays for all of jane's support? a.no, jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.b.yes, because she is a full-time student and does not provide more than half of her own support, jane is considered her parent's qualifying child.c.no, jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.d.yes, because she is a student, her absence is considered as "temporary." consequently she meets the residence test and is a considered a qualifying child of the bennetts.