BACC 460 Assignment 2 (LO2) Before this two companies entered into a business combination, their balance Sheets were as follows Alto Corporation Bajo Company Book Value Fair Value Book Value Fair Value Item Assets Cash & Receivables Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets $ 153,000 $ 153,000 $ 95,000 $ 95,000 301,000 397,000 83,000 103,000 601,000 439,000 262,000 207,000 (240,000) (70,000) $ 815,000 $ 989,000 $ 370,000 $ 63,000 $ 63,000 $ 193,000 208,000 33,000 $ 33,000 30,000 35,000 Liabilities & Equities Accounts Payable Notes Payable Common Stock: $4 par value $3 par value Additional Paid-In Capital Retained Earnings 179,000 124,000 256,000 84.000 35,000 188,000 Total Liabilities & Equities $ 815,000 $ 370,000 Alto purchased all of Bajo Company's assets and liabilities on January 1, 2019, in exchange for its ordinary shares. Alto issued (70,022.) shares of stock to complete the business combination. To effect the merger, Alto paid finder's fees of $15,000 and legal fees of $4,000. Alto also also paid $5,000 of audit fees related to the issuance of stock, stock registration fees of $3,000, and stock listing application fees of $6,000. Required: a) Prepare a balance sheet of the combined company immediately following the acquisition, assuming Alto's shares were trading at $10 each. b) Prepare all the necessary journal entries