Accounting Company acquires all of 305 Company's outstanding common stock for CU600,000, an amount equal to the fair value of 905 Company as a whole. 305 Company is the main raw material supplier of Accounting Company and it's market share is increasing in last years. On the date of combination the fair values of 3055 individual assets and liabilities are equal to their book values as shown. Balance sheets of Accounting and 305 immediately before combination Accounting Assets Cash 700 100 Accounts Receivable 150 100 Inventory 200 120 Land 350 80 Buildings & Equipment 1.600 1200 Accumulated Depreciation -800 -600 Total Assets 2.200 1.000 Liabilities & Stockholders' Equity Accounts Payable 200 200 Bonds Payable 400 200 Common Stock 1000 400 Retained Earnings 600 2001) Please record the purchase of 305 Total Liabilities & Equity 2.200 1.000 2) Please journalize basic consolidation entry. 3) Please journalize accumulated depreciation consolidation entry 4) Please critically discuss the potential reasons of acquisitions of 305 by Accounting Company