34. On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued Pacifica common shares ($20 market value, S5 par value) and an agreement to pay an additional S130,000 cash if Seguros meets certain project completion goals by December 31 of the following year. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money Immediately prior to the acquisition, the following data for both firms were available: Seguros Seguros Book Values Fair Values Pacifica Revenues Expenses $(1.200,000) 875,000 . $ (325 $ (950,000) (325,000) 90,000 Dividends declared. Retained earnings, 12/31 Cash Receivables and inventory Property, plant, and equipmernt $%1.185,000 $ 110,000 750,000 1,400,000 300,000 $85,000 190,000 450,000 160,000 180,000 600,000 200,000 Trademarks . $2,560,000 885.000 Total assets . $(500,000) $(180,000) $(180.000) (400,000) (200,000) (70,000) 1.185,000) (435.000) Common stock (475,000) Retained earnings. $2.560,000 $(885.000) In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15.000 in connection with the acquisition and $9,000 in stock issue costs. Prepare the following: a. Pacifica's entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a 0.961538 present value factor where applicable.) A postacquisition column of accounts for Pacifica. A worksheet to produce a consolidated balance sheet as of the acquisition date. b. c