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  3. 4. on january 1, chester inc. acquires 100% of fes

4. On January 1, Chester Inc. acquires 100% of Festus Corp.'s outstanding common stock by...

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4. On January 1, Chester Inc. acquires 100% of Festus Corp.'s outstanding common stock by issuing 100,000 shares of Chester's $1 par value common voting stock. In addition, Chester paid $1,800,000 in cash. Chester also incurred direct combination costs of $350,000 and stock issuance costs of $650,000. On January 1, Chester's voting common stock had a market value of $35.50 pershare. Festus' voting common shares were selling for $12.50 pr share. Festus' balances on the acquisition date, just priorto acquisition are listed below. Book Value Fair value Cash $530,000 $ 530,000 Receivables 610,000 630,000 Inventory 400,000 400.000 Land 600,000 700,000 Building (net) 500,000 580,000 Equipment (net) 375,000 300,000 Payables (280,000) (280,000) Common Stock, $1 par value (1,800,000) (2,250,000) Paid-In Capital (660,000) R/E (January 1) (275,000) Required: 1. Using the Acquisition Method, compute the value of Chester's investment account on the date of acquisition, January 1. 2. Prepare the necessary journal entries regarding the acquisition of Festus? 3.What amount of Goodwill Should Chester record

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