Problem 1: Davis acquires 100% of Reynolds in acquisition. At date of acquisition, Reynolds had in process research and development costs they had spent 300, 000 for 3 years ago and is now recorded on its books at 100,000. This R and D has not yet reached technological feasibility and no alternative use has been identified. At acquisition date, Reynolds continues to work on this project and the fair value is considered to be 200,000. How much will Davis recorded this four at acquisition under the;
a. acquisition method
b. purchase method
c. pooling of interest method
d. do either of answers a,b,c above differ is this transaction was structured as either a statutory merger or a statutory consolidation