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Accounting Company acquires all of 305 Company's outstanding common stock for CU 600,000, an amount equal to the fair value of 305 Company as a whole. 305 Company is the main raw material supplier of Accounting Company and it's market share is increasing in last 5 years. On the date of combination, the fair values of 305's individual assets and liabilities are equal to their book values as shown. Balance sheets of Accounting and 305 immediately before combination: Accounting 305 700 150 200 350 1.600 -800 100 100 120 80 1200 -600 Assets Cash Accounts Receivable Inventory Land Buildings & Equipment Accumulated Depreciation Total Assets Liabilities & Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 2.200 1.000 200 200 200 400 1000 600 2.200 400 2001) Please record the purchase of 305. 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