Easton company and lofton company were combined as result of a purchase transaction. easton was able to acquire lofton at a bargain price. the sum of the fair values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost of acquiring easton. easton will report the excess amount as
a. a gain.
b. paid-in capital.
c. a deferred credit and amortize it.
d. part of current income in the year of combination.

On june 1, 2017, blossom company was started with an initial investment in the company of $22,360 cash. here are the assets, liabilities, and common stock of the company at june 30, 2017, and the revenues and expenses for the month of june, its first month of operations: cash $4,960 notes payable $12,720 accounts receivable 4,340 accounts payable 840 service revenue 7,860 supplies expense 1,100 supplies 2,300 maintenance and repairs expense 700 advertising expense 400 utilities expense 200 equipment 26,360 salaries and wages expense 1,760 common stock 22,360 in june, the company issued no additional stock but paid dividends of $1,660. prepare an income statement for the month of june.