1. Roger Company acquires SaraBay Inc., by issuing 50,000 shares of $1 par common stock with a market price of $25 per share on the acquisition date and paying $100,000 cash. The assets and liabilities on SaraBay's balance sheet were valued at fair values except equipment that was undervalued by $75,000. There was also an unrecorded patent valued at $57,000, as well as an unrecorded trademark valued at $30,000 (5 Points Chapter 1 L01) The pre-acquisition balance sheets for the SaraBay companies at acquisition date are presented below. SaraBay Inc BI Cash 80,000 Accounts receivable 160,000 Inventory 180,000 Property, plant, and equipment 523,600 943,600 80,000 40,000 Accounts payable Salaries and taxes payable Notes payable Common stock Additional paid-in capital Retained earnings 116,000 25,000 425,000 257,600 943,600 a. Prepare the entry if Roger Company acquires all of the common stock outstanding of Sara Bay b. Prepare the entry if Roger Company acquires the Net Assets of SaraBay, Account Debit Credit