In a business combination, Major Corporation issued nonvoting, nonconvertible preferred stock with a fair value of $8 million in exchange for all of the outstanding common stock of Minor Corporation. On the acqusition date, Minor had identifiable net assets with a carrying amount of $4 million and a fair value of $5 million. In addtion, Major issued perferred stock with a fair vaule of $800,000 to an individual as a finder's fee in arranging the transaction. As a result of this transaction, Major should record an increase in net assets of

A. 4,000,000

B. 5,000,000

C. 8,000,000

D. 8,800,000

The correct asnwer is C and I chose D...

I certainly know that the finder's fee would be expensed. So my JE for it-

Dr.Cash 800,000

Cr.P/S 800,000

Dr. Finder's fee exp 800,000

Cr. Cash 800,000

So i think we should add 800,000 to 8,000,000...where did i miss? Thanks