Exercise 2 On January 2, 2005 Altamira Company issued 80,000 new shares of its $2 par value common stock valued at $12 a share for all of Lascaux Corporation's outstanding common shares. Altamira paid $5,000 for the direct combination costs of the accountants. Altamira paid $10,000 to register and issue shares. The fair value and book value of Lascaux'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: Cash Inventories Other current assets Land Plant assets-net Total Assets Altamira $ 75,000 160,000 200,000 175,000 1,500,000 $2,110,000 Lascaux $ 60,000 200,000 250,000 125,000 750,000 $1,385,000 Accounts payable Notes payable Capital stock, S2 par Paid-in capital Retained Earnings Total Liabilities & Equity $ 100,000 700,000 600,000 450,000 260,000 $2,110,000 $ 155,000 330,000 250,000 50,000 600,000 $1,385,000 Required: 1. Prepare Altamira's general journal entry for the acquisition of Lascaux assuming that Lascaux survives as a separate legal entity. 2. Prepare Altamira's general journal entry for the acquisition of Lascaux assuming that Lascaux will dissolve as a separate legal entity