Business Combinations Exercise (2): On December 31,2018 in a statutory consolidation approved by shareholders of both (A) and (B) companies to form a new corporation (C) and they deposited in the Arab Bank JD1000000 cash as capital . (C) Corporation purchased all net assets of (A) for JD460000 cash while (B) corporation is purchased for JD215000 cash. The balance sheets of the constituent companies involved in the consolidation are as follows: Explanations A Carrying value Fair value B Carrying value Fair value ISH (UNITED STATES) I OM w] The balance sheets of the constituent companies involved in the consolidation are as follows: Explanations A Carrying value Fair value B Carrying value Fair value Assets Cash Inventory Cars Buildings Land Total assets 190000 130000 60000 100000 180000 660000 190000 25000 120000 45000 20000 10000 80000 40000 200000 60000 610000 180000 25000 40000 30000 45000 62000 202000 NITED STATES) BI e 07 Font Styles Paragraph 2. Total assets 10 14 15 660000 610000 180000 202000 Liabilities and stockholders' equity Payable notes Common Stock Paid in capital 20000 210000 350000 75000 210000 30000 120000 20000 6 E X ENGLISH (UNITED STATES) Business Combinations Retained Earnings 25000 10000 Total Liabilities | 660000 180000 and stockholders' equity I Required: 1. (C's) company journal entries for business combination. 2. Compute goodwill. 3. Ledger Accounts of (C) company affected by business combination. 4. (C's) company balance sheet after consolidation. KATES) i 07