exam 2 acct 473 - Word ailings Review View Help PDF Pro 10 Tell me what you want to do Title Sub | cel 1 Normal No Spac... Heading 1 Heading 2 Subtitle Paragraph Styles 1 3. The following are preliminary financial statements for Choco Co. and Cake Co, for the year ending December 31, 2020 prior to Choco's acquisition of Cake. + 5 6 Choco Co. Cake Co. Book Values Book Values Fair Values Cash and Receivable 120,000 30,000 30.000 Inventories 240,000 90,000 94,000 Land 120,000 108,000 128,000 Building 480,000 336.000 348,000 Accounts payable (70,000) (100,000) (100,000) Long-term debt (38,000) (32,000) (34.000) Common stock (192,000) 72.000) Additional paid in capital (96.000) (12.000) Retained carnings 12/31/20 (564,000) (348,000) Revenues (360,000) (228,000) Expenses 240,000 132.000 On 12/31/2020 Choco exchanged 20,000 shares of its S4 par value common stock for all the outstanding shares of Cake, Choco's stock on that date has a fair value (-market price) of $30 per share. Assume these two companies retained their separate legal identities. 1) Prepare a journal entry for acquisition in Choco's book. (1.5 points) Account name Debit Credit 2) Show calculation of goodwill gain on bargain purchase at the date of the acquisition using fair value allocation schedule (sce Chapter 2 ppt 41). (7 points) O 3) Choco paid $8,000 to several attorneys and accountants who assisted in this business combination. Prepare a journal entry. (1 point) Account name Debit Credit 4) Prepare consolidation Entry Son 12/31/20. (2 points) Account name Debit Credit