4. The following are the account balances of Big Net Company and Smallport Company as of December 31. The fair values of Smallport Company's assets and liabilities are also listed. Big Net Company Book Values Smallport Smallport Company Book Values Company December 31 Fair Values December 31 December 31 Current assets $ 1,100,000 $ 550,000 $ 300,000 Computers and 1,300,000 840,000 400,000 equipment Capitalized software 500,000 1,600,000 100,000 Customer contracts 0 500,000 0 Notes payable (300,000) (250,000) (200,000) Net assets $ 2,600,000 $ 3,240,000 $ 600,000 Common stock-$10 par $ 1,600,000 value Common stock-$5 par value $ 100,000 Additional paid-in capital 40,000 20,000 Retained Earnings, 1/1 870,000 370,000 Dividends declared 110,000 10,000 Revenues 1,000,000 500,000 Expenses 800,000 380,000 Owners' equity 12/31 $ 2,600,000 $ 600,000 Retained earnings, 12/31 960,000 480,000 Additional Information On December 31, Big Net paid cash of $2,000,000, issued Land (Cost $100,000 and FMV-$300,000 and 20,000 shares of its $10 par value common stock for all the outstanding shares of Smallport Company. Required Big Net stock has a fair value of $30 per share. Using the acquisition method: Prepare the necessary journal entries if Big Net dissolves Smallport so it is no longer a separate legal entity.