Bellamerica Cos January 1, 2017 balance sheet is as follows:

Assets		Liabilities & Equity
Cash, receivables	$ 3,000,000	Current liabilities	$ 2,000,000
Inventories	4,000,000	Long-term liabilities	6,500,000
Equity method investments	1,000,000	Capital stock	4,000,000
Land, buildings & equipment	5,500,000	Retained earnings	3,500,000
Goodwill	2,000,000	Accumulated other comprehensive loss	(400,000)
	_________	Treasury stock	(100,000)
Total assets	$15,500,000	Total liabilities & equity	$15,500,000

On January 1, 2017, Prance Corporation acquired Bellamericas assets and liabilities for $40 million in cash. Bellamericas cash, receivables, and current liabilities were reported at values approximating fair value. Its inventories were overvalued by $1,500,000, and its equity method investments were undervalued by $4,000,000. Its land, buildings & equipment were undervalued by $5,000,000. Its long-term liabilities were overvalued by $500,000. The accountants identified the following possible intangible assets attributed to Bellamerica but not currently recorded on its balance sheet:

	Fair Value
Skilled workforce	$7,000,000
Internet domain name	2,000,000
Developed technology	1,000,000
Customer order backlog	500,000
Synergies on future projects	4,000,000

Required

Prepare the JE made by Prance to record the business combination as a merger.