1. Choco Co. issued its common stock in exchange for the common stock of Cake Corp. in an acquisition. At the date of the combination, Choco had land with a book value of $250,000 and a fair value of $620,000. Cake had land with a book value of $100,000 and a fair value of $180,000. There was no additional land transactions on acquisition date (i.e, purchases and/or sales). What was the consolidated balance for Land in a consolidated balance sheet prepared at the date of the acquisition combination? (3 points) 2. Cake Corp. had the following account balances at 12/31: Cash and receivables Inventory Land Building Liabilities Book valueFair value $20,000 190,000 550,000 400,000 300,000 $20,000 150,000 500,000 450,000 350,000 Choco Inc. acquired all of the outstanding common shares of Cake by issuing 40,000 shares of common stock having a $2 par value, stock price $25/share fair value). Cake Corp. has dissolved. 1) Show calculation of goodwill/gain on bargain purchase at the date of the acquisition 12/31. (5 points) 2) Prepare a journal entry for the acquisition of Cake in Choco's book. (8 points) Account name Debit Credit