explain both please 2-4 and 2-5

Ul Salt Company Ise 2-4 Asset Purchase, Cash LO 6 Company acquired the assets and assumed the liabilities of S Company on January 1, 2018, for $510,000 when S Company's balance sheet was as follows: S COMPANY Balance Sheet January 1, 2018 Cash Receivables Inventory Land Plant and equipment (net) $ 96.000 55,200 110,400 169,200 466,800 $897,600 Total Accounts payable Bonds payable, 10%, due 12/31/2023, Par Common stock, $2 par value Retained earnings Total $ 44,400 480,000 120,000 253,200 $897,600 Fair values of S Company's assets and liabilities were equal to their book values except for the following: 1. Inventory has a fair value of $126,000. 2. Land has a fair value of $198.000. 3. The bonds pay interest semiannually on June 30 and December 31. The current yield rate on bonds of similar risk is 8%. Required: Prepare the journal entry on P Company's books to record the acquisition of the assets and assump- tion of the liabilities of S Company. e2-5 Asset Purchase, Contingent Consideration as a Liability LO 7 Pritano Company acquired all the net assets of Succo Company on December 31, 2018, for $2,160,000 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: Current assets Book value $ 960,000 1,080,000 $2,040,000 Fair value $ 960,000 1,440,000 Plant and equipment Total $2,400,000 $ 216,000 Liabilities Common stock Other contributed capital Retained earnings $ 180,000 480,000 600,000 780,000 Total $2,040,000 69 ises As part of the negotiations, Pritano agreed to pay the stockholders of Succo $360,000 cash if the post-combination earnings of Pritano averaged $2,160,000 or more per year over the next two years. The estimated fair value of the contingent consideration was $144,000 on the date of the acquisition Required: A. Prepare the journal entries on the books of Pritano to record the acquisition on Decem- ber 31, 2018 B. At the end of 2019, the estimated fair value of the contingent consideration increased to $200,000. Prepare the journal entry to record the change in the fair value of the contingent consideration, if needed. C. In 2020, the earnings did not meet the earnout target and the estimated fair value of the contingent consideration was zero. Prepare the journal entry to record the change in the fair value of the contingent consideration. Ul Salt Company Ise 2-4 Asset Purchase, Cash LO 6 Company acquired the assets and assumed the liabilities of S Company on January 1, 2018, for $510,000 when S Company's balance sheet was as follows: S COMPANY Balance Sheet January 1, 2018 Cash Receivables Inventory Land Plant and equipment (net) $ 96.000 55,200 110,400 169,200 466,800 $897,600 Total Accounts payable Bonds payable, 10%, due 12/31/2023, Par Common stock, $2 par value Retained earnings Total $ 44,400 480,000 120,000 253,200 $897,600 Fair values of S Company's assets and liabilities were equal to their book values except for the following: 1. Inventory has a fair value of $126,000. 2. Land has a fair value of $198.000. 3. The bonds pay interest semiannually on June 30 and December 31. The current yield rate on bonds of similar risk is 8%. Required: Prepare the journal entry on P Company's books to record the acquisition of the assets and assump- tion of the liabilities of S Company. e2-5 Asset Purchase, Contingent Consideration as a Liability LO 7 Pritano Company acquired all the net assets of Succo Company on December 31, 2018, for $2,160,000 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: Current assets Book value $ 960,000 1,080,000 $2,040,000 Fair value $ 960,000 1,440,000 Plant and equipment Total $2,400,000 $ 216,000 Liabilities Common stock Other contributed capital Retained earnings $ 180,000 480,000 600,000 780,000 Total $2,040,000 69 ises As part of the negotiations, Pritano agreed to pay the stockholders of Succo $360,000 cash if the post-combination earnings of Pritano averaged $2,160,000 or more per year over the next two years. The estimated fair value of the contingent consideration was $144,000 on the date of the acquisition Required: A. Prepare the journal entries on the books of Pritano to record the acquisition on Decem- ber 31, 2018 B. At the end of 2019, the estimated fair value of the contingent consideration increased to $200,000. Prepare the journal entry to record the change in the fair value of the contingent consideration, if needed. C. In 2020, the earnings did not meet the earnout target and the estimated fair value of the contingent consideration was zero. Prepare the journal entry to record the change in the fair value of the contingent consideration