Acquisition Entries, Acquisition Costs, Bargain Gain Plastic Corporation is contemplating a business combination with Steel Corporation at December 31, 2021. Steel's condensed balance sheet on that date appears below: Required Prepare the journal entry to record the business combination as a merger, in each of the following situations. a. Plastic acquires Steel for $250,000 cash. Other direct cash acquisition costs are $20,000. b. Plastic acquires Steel for $85,000 cash. Other direct cash acquisition costs are $5,000. c. Now assume the following fair values for Steel's assets: Cash and receivables, $10,000; Inventory, \$8,000: Land, \$2,000; Buildings and equipment, \$5,000; Patents, \$1,000. Steel's liabilities are reported at amounts equal to fair value, and it also has unrecorded liabilities of $20,000. Plastic acquires Steel for $275,000 cash. Other direct cash acquisition costs are $15,000