2.1 North Inc. commenced operations on January 1, 2024. At that date, cash on hand was $2,000,000. Issued commons shares were $2,000,000. On the same day, the company acquired all the shares of South Company for $1,000,000 cash. The following assets were acquired, at fair value: Land $500,000 Building $310,000 Computer software $45,000 The building will be depreciated using the straight-line method. It has an estimated useful life of 20 years and a residual value of $10,000. The computer software has an estimated useful life of five years and a residual value of $5,000. It is amortized on the straight-line basis. Amortization expense needs to be claimed on the software for 2024. The computer software was sold on December 31, 2024, for $60,000 cash. During 2024, North Inc. had sales of $600,000. $345,000 of these sales has been collected in cash by year-end. $5,000 of accounts receivable were written off as uncollectible during the year. The company estimates allowance for doubtful accounts at 10% of ending accounts receivable. Required: 1. Complete the transactions worksheet on the following page for the year ended December 31, 2024. Assume there are no other transactions. 2. Calculate the carrying amounts of accounts receivable, goodwill, and PPE reported on the statement of financial position at December 31, 2024. 3. What are the effects of the transactions on the statement of cash flows? on the income statement? on the statement of changes in equity? Hint: Review P2-3, P2-24 and P2-25 and solutions in the Introduction to Financial Accounting material. Check figures: Bad debt expense is $25,000; gain on disposal of computer software is $23,000; ending cash balance is $1,405,000; ending computer software balance is zero