Art Incorporateds statement of financial position as at June 30, Year 8, is as follow:

Art Incorporated Statement of Financial Position As of June 30, Year 8
	Carrying Value		Fair Market Value
Cash	$ 15,000		$ 15,000
Accounts receivable	23,000		20,000
Inventory	115,500		120,000
Property, Plant and Equipment (net)	854,000		780,000
Land	250,000		380,000
Total assets	$ 1,257,500
Current liabilities	$ 54,000		$ 54,000
Long-term debt	335,000		300,000
Common shares	450,000
Retained earnings	418,500
Total liabilities and equities	$ 1,257,500

On July 1, Year 8, Historical Corp purchase the net asset of Art Incorporated for $1,000,000

Required

a) Prepare the journal entries in the accounting records of Historical Corp to record the business combinations. (10 marks)

b) Prepare the journal entries in the accounting records of Art Incorporated to record the sale of the net asset. (10 marks)