3. Acquisition Method Prance Company acquired all the assets and liabilities of Seaver Company and properly recorded the transaction under the acquisition method. Seaver's balance sheet prior to the transaction was as follows: Book Value Fair Value A/R $ 175,000 $175,000 Inventory 465,000 500,000 20,000 20,000 Equipment Building 90,000 85,000 Land 30,000 60,000 Total Assets $ 780,000 $840.000 Accounts Payable $ 120,000 $130,000 Common Stock ($5 par) 100,000 100,000 Pald in Capital 320,000 310,000 Retained Earnings 240,000 300,000 Total Liab & Equity $ 780,000 $840,000 a) Prepare the journal entry on the books of Prance to record the acquisition of Seaver's net assets, assuming that Prance paid $750,000. b) Prepare the journal entry on the books of Prance to record the acquisition of Seaver's net assets, assuming that Prance paid $690,000