3. Donner Corporation had the following selected account balanees and fair values at December 31,2020 when it was acquired by Valucton Company. Valueton Company acquired all of the common shares of Donner Corporation by issuing 10,000 shares of its own common stock valued at $18 per share. Valueton incurred stock issuance costs of $4,000 and paid $8,000 in direct clerical and legal costs of the combination. Valueton also agreed to pay an additional $19,000 if Donner achieved certain profit goals within the first three years. he contingent payment was determined to have a fair value of $10,000. Required: a. What is the acquisition cost of the combination? b. How do the stock issuance costs affect Valueton's balance sheet? c. How do the direct costs of the combination affect Valueton's balance sheet? d. What will be the accounting treatment of the In-process R \& D? Part three (10 marks): Problems Bates Corporation purchased 100\% of the common stock of Johns Inc. on January 2, 2021. Johns' balance sheet on January 2, 2021 was as follows: Fair values agree with book values except for inventory, land, and equipment that have fair values of $275,000, $150,000 and $150,000, respectively. Johns has unrecorded patent rights valued at $75,000. Required: a. Prepare a schedule to assign values to Johns' post-acquisition assets and liabilities assuming Bates paid $1,000,000 cash for the acquisition. b. Prepare the consolidation entries for a January 2,2021 consolidated balance sheet