0 Example: Using the purchase method in Mergers - (A+B=A) Balance sheets for Philips company and Solina Company on January 1, 2010 were as follow: Philips Splina Current assets 180000 85000 Plant & equipment 450000 140000 Total Assets 630000 225000 Total Liabilities 95000 35000 Common stock. S10 par value 350000 160000 Other contributed capital 125000 30000 Retained earnings 60000 Total liabilitats and equities 630000 225000 On this date, the stockholders of Philips and solina agreed to merge. It was agreed that Philips Company will acquire Solina Company by issuing 20000 share of its S10 par stock to acquire all the net assets of Solina at a time when the fair value of Philips common stock was $15 per share. Philips also paid $50000 in cash to Solina's stockholders. The fair values of Solina's current assets and liabilities were equal to their book values. The fair value of its planet and equipments was, however S150000 Philips incurred S20000 of direct acquisition costs, and 56000 in securities issue costs. Required: Prepare the journal entries on the books of Philips to record the acquisition of Solina's net assets - Prepare Philips balance sheet immediately after this acquisition