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. Assets Book Fair Value Value Cash and receivables $10,000 $10,000 Inventory 35,000 45,000 Equity method investments Land 26,000 31,000 Buildings and equipment Patents Total assets Liabilities and Stockholders' Equity Liabilities 7,000 14,000 5,000 10,000 $83,000 $22,000 $22,000 Common stock 25,000 Retained earnings 36,000 Total liabilities and equity $83,000 (b) Plastic acquires Steel as a merger for $85,000 cash. Other direct cash acquisition costs are $5,000. General Journal Description Debit Credit Cash and receivables 0 Inventory 0 0 Equity method investments 0 0 Land 0 0 Buildings and equipment 0 0 Patents 0 0 0 0 Liabilities Cash 0 0 0 0 0 0 (c) Plastic acquires all of Steel's stock for $275,000 cash, in a stock acquisition. Other direct cash acquisition costs are $15,000. General Journal Description Debit Credit Acquisition expenses 0 0 0 0 Please answer all parts of the question. Required Prepare the journal entry to record the business combination of Plastic and Steel for each of the following acquisition costs and combination methods. (a) Plastic acquires Steel as a merger for $250,000 cash. Other direct cash acquisition costs are $20,000. General Journal Description Debit Credit Cash and receivables 0 0 Inventory 0 0 Equity method investments 0 0 Land 0 0 Buildings and equipment 0 0 Patents 0 0 Goodwill 0 0 0 0 Liabilities 0 0 0 0