Exercise 1 On January 2, 2005 Bison Corporation issued 100.000 new shares of its $5 par value common stock valued at $19 a share for all of Deer Corporation's outstanding common shares. Bison paid $15,000 to register and issue shares. Bison also paid $10,000 for the direct combination costs of the accountants. The fair value and book value of Deer's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2005 is as follows: Bison Deer Cash $ 150,000 $ 120,000 Inventories 320,000 400,000 Other current assets 500.000 500.000 Land 350.000 250,000 Plant assets-net 4,000,000 1,500,000 Total Assets $5.320.000 $2.770,000 Accounts payable Notes payable Capital stock, 55 par Paid-in capital Retained Earnings Total Liabilities & Equities $1,000,000 1,300,000 2,000,000 1,000,000 20.000 $5.320.000 $ 300,000 660,000 500.000 100,000 1.210,000 $2,770.000 Required: 1. Prepare Bison's general journal entry for the acquisition of Deer, assuming that Deer survives as a separate legal entity. 2. Prepare Bison's general journal entry for the acquisition of Deer, assuming that Deer will dissolve as a separate legal entity