a. record the business combination on the books of primary corporation.

b. prepare entry worksheets to prepare a consolidated balance sheet immediately following the business combination on January 2, 20X8

3 points On January 2, 20X8. Primary Corporation acquired 100 percent of Secondary Company's outstanding common stock. In exchange for Secondary's stock. Primary issued bonds payable with a par and fair value of $650,000 directly to the selling stockholders of Secondary. The two companies continued to operate as separate entities subsequent to combination. Immediately prior to the combination the book values and fair values of the companies' assets and liabilities were as follows Primary corporation Secondary Company I Book Value Fair value Cash Book Value Fair Value $ 12.ae $ 12.000 $ 9,AB Receivables $. 9.000 41,800 39,000 Allowance for Bad Debts 31, 80e 38.000 (2.000) (1,000) Inventory 86, eae 89,00 68, nee 72,800 Land 55.ee 280,00 58,800 70,000 Buildings and Equipment 96eeee 650,00 670, 680 580, Accumulated Depreciation (411) (220, 800) Patent 40.000 Total Assets $ 741,000 $998,eae $ 607.000 $221,000 $38.000 210, eee $ 29,000 se, ego Current Payables Bonds Payable Common Stock Additional Paid In Capital Retained Earnings Total Liabilities & Equity 5 38, 200,00 360.ee 180, eae 183,000 5 741,000 $ 29, eee 188,800 200, eee 130,00 148, eee $ 607.000 At the date of combination, Secondary owed Primary $6.000 plus accrued interest of $500 on a short-term note Both companies have properly recorded these amounts Required: a. Record the business combination on the books of Primary Corporation (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)