Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 18

To obtain all of the stock of Molly, Inc., Harrison Corporation issued its own common stock.Harrison had to pay $98,000 to lawyers, accountants, and a stock brokerage firm in connection with services rendered during the creation of this business combination.In addition, Harrison paid $56,000 in costs associated with the stock issuance.How will these two costs be recorded under the acquisition method