Business Combination Versus Asset Acquisition As part of a project, Webflow Inc. acquires these assets from Digital Sea Company (in millions): Fair Value Cash $16 Trading debt investments Equipment 24 In-process R&D 960 240 The in-process R&D has no alternative future use. Webflow pays $1,340 million in cash for the acquired assets, and also pays $20 million in cash for legal and advisory costs. Note: Provide all answers in millions and round answers to the nearest whole number. For example, 16,355,000 would be 16. a. Prepare the journal entry to record the acquisition if it qualifies as a business combination. Debit Credit Cash 16 0 Equipment 960 0 IPR&D 240 0 Merger expenses 20 0 Goodwill 0 0 x Gain on investment 0 0x Cash 0 1,360 To record the business combination b. Prepare the journal entry to record the acquisition if it is an asset acquisition. Assume the cash and trading investments are nonqualifying assets. Debit Credit Cash Gain on investment 0 0 0 0 x Equipment 0 0 x IPR&D 0 0 Cash 0 1,360 To record the asset acquisition