Baba company issued 10,000 shares of its $2 par common stock (current fair value $30 a share) to stockholders of Manny company for all the outstanding $3 par common stock of Manny. The merger fees were $50,000.

The balance sheet of the two companies was as follow:

Baba CORPORATION AND Maany COMPANY
Separate Financial Statements (prior to business combination)
For Year Ended December 31, 2020
	Baba Corp.	Manny Comp
Balance Sheets
Assets
Cash	$100,000	$50,000
Inventories	$120,000	$13,000
Other Current Assets	900,000	$10,000
Total Assets	1120,000	73,000
Liabilities and Stockholders' Equity
Other Liabilities	$220,000	$23,000
Common Stock, $2 par	600,000
Common Stock, $3 par		$30,000
Additional Paid-In Capital	200,000	10,000
Retained Earnings	??	??
Total Liabilities & Stockholders Equity	??	??

On December 31, 2020, the current fair values of Manny companys identifiable assets and liabilities were the same as their carrying amounts, except for the Inventories which was $30,000.

Instructions:

1. Prepare the journal entries for the business combinations on 31/12/2020. (6 Points)
2. Prepare the consolidated balance sheet on 31/12/2020. (4 Points)