2. Cake Corp. had the following account balances at 12/31: Book value Fair value Cash and receivables $20,000 $20,000 Inventory 150,000 190,000 Land 500,000 550,000 Building 450,000 400,000 Liabilities 350,000 300,000 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