Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,357,780 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: Book value Fair value Current assets $ 1,012,260 $1,012,260 Plant and equipment 1,008,470 1,422,140 Total $2,020,730 $2,434,400 Liabilities $187,260 $237,130 Common stock 518,440 Other contributed capital 608,300 Retained earnings 706,730 Total $2,020,730 As part of the negotiations, Pritano Company agreed to issue 10,740 additional shares of its $10 par value common stock to the stockholders of Succo if the average postcombination earnings over the next three years equaled or exceeded $2,641,500. The fair value of the contingent consideration on the date of acquisition was estimated to be $200,600. The contingent consideration (earnout) was classified as equity rather than as a liability. Collapse question part (a) Prepare the journal entries on the books of Pritano to record the acquisition on December 31, 2013.

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?