2. Condensed balance sheets for Verk Company and Kent Company on January 1, 2013 are as follows: Accounts Receivable Inventory Land Building (net) Total Verk $ 200,000 150,000 150,000 350,000 $ 850,000 Kent $ 80,000 85,000 50,000 190,000 $ 405,000 Current Liabilities Bonds Payable Common Stock Retained Earnings Total $ 160,000 100,000 300,000 290,000 $ 850,000 $ 55,000 100,000 100,000 150,000 $ 405,000 On January 1, 2013 the stockholders of Verk and Kent agreed to a statutory consolidation whereby a new corporation, Barker Company, would be formed to consolidate Verk and Kent. Barker Company issued 30,000 shares of its $10 par value common stock for the net assets of Verk and Kent. On the date of consolidation, the fair values of Verk's and Kent's current assets and liabilities were: Verk Inventory $ 200,000 Bonds Payable 90,000 Land 300,000 Building 450,000 Kent $ 100,000 95,000 80,000 400,000 The estimated fair value of Barker Company's common stock was $40 per share. Verk (as combinor) will pay $22,000 of direct acquisition costs. a) Prepare the journal entry to record the consolidation on the books of Barker Company assuming that the consolidation is accounted for as an acquisition. b) Prepare the Balance Sheet of Barker Company as of January 1, 2013