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ASAP!!!! thank you Assume that Holmes issued 40,000 shares of common...

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ASAP!!!! thank you

Assume that Holmes issued 40,000 shares of common stock with a $5 par value and a $25 fair value for all of the outstanding stock of Lynch. In addition, Holmes agreed to pay the shareholders of Lynch another $80,000 if Lynch's earnings exceed $50,000 next year. The estimated probability of this payment is 80% and we assume a present value factor of 0.95 for one year. Holmes also paid $8,000 legal fees and $3,000 stock issuance fees for this acquisition. Prepare the journal entries Holmes records on the acquisition date December 31, 2020

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