Assume that on 1/10/X1, Big Company issues 20,000 shares of Big Common stock in exchange for all 20,000 outstanding shares of Small Company's Common Stock. After acquiring Small's stock, the two companies will immediately merge and will henceforth operate under the Big Company name. Under the terms of the merger agreement, Big will assume responsibility for Small's liabilities. Prior to the merger, Big and Small reported the following balance sheets: Big Small Cash $100,000 $50,000 Receivables $120,000 $60,000 Inventory $160,000 $80,000 Equipment $200,000 $100,000 Payables $100,000 $50,000 Common Stock $240,000 $120,000 Retained Earnings $240,000 $120,000 At the time of the merger, the common shares of Big and Small traded at $15 and $12, respectively. Appraisals of the assets of Big and small were unable to identify any mis-valued assets. After the merger on 1/10/X1, Big should report total assets on its balance sheet at which of the following amounts? Prepare the accounting entries that Big must make to record the merger. Assume that on 1/10/X1, Big Company issues 20,000 shares of Big Common stock in exchange for all 20,000 outstanding shares of Small Company's Common Stock. After acquiring Small's stock, the two companies will immediately merge and will henceforth operate under the Big Company name. Under the terms of the merger agreement, Big will assume responsibility for Small's liabilities. Prior to the merger, Big and Small reported the following balance sheets: Big Small Cash $100,000 $50,000 Receivables $120,000 $60,000 Inventory $160,000 $80,000 Equipment $200,000 $100,000 Payables $100,000 $50,000 Common Stock $240,000 $120,000 Retained Earnings $240,000 $120,000 At the time of the merger, the common shares of Big and Small traded at $15 and $12, respectively. Appraisals of the assets of Big and small were unable to identify any mis-valued assets. After the merger on 1/10/X1, Big should report total assets on its balance sheet at which of the following amounts? Prepare the accounting entries that Big must make to record the merger