Exercise 1 (13 marks) On July 1, 2014, Piper Corporation issued 23,000 shares of its own $2 par value common stock for 40,000 shares of the outstanding stock of Sector Inc. in an acquisition. Piper common stock at July 1, 2014 was selling at $16 per share. Just before the business combination, balance sheet information of the two corporations was as follows: Piper Sector Sector Book Book Fair Value Value Value Cash $25,000 $17,000 $17,000 Inventories 55,000 42,000 47,000 Other current assets 30,000 110,000 40,000 Land 100,000 45,000 35,000 Plant and equipment-net 220,000 280.000 660.000 $950.000 $364,000 $409.000 Liabilities $220,000 $70,000 $75,000 Capital stock, $2 par value 500,000 100,000 Additional paid-in capital 170,000 90,000 Retained earnings 60.000 104,000 $950,000 $364.000 Required: 1. Prepare the journal entry on Piper Corporation's books to account for the investment in Sector Inc. 2. Prepare a consolidated balance sheet for Piper Corporation and subsidiary immediately after the business combination. Show the adjusting and eliminating entries. Show all the calculations