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Explaination for each entry is also needed please On January 1, 2020, P purchases all the outstanding common stock of Sin exchange for $1,950,000 of

Explaination for each entry is also needed please image text in transcribed
On January 1, 2020, P purchases all the outstanding common stock of Sin exchange for $1,950,000 of its bonds that are at par value on the acquisition date. Transaction costs of 42,000 were incurred to effect the deal. S net assets and liabilities equal book value except for a patent that it developed that has a fair value of $310,000, PPE that has appreciated by $500,000 since Spurchased it, and bonds which are valued at a $10,000 premium. On the acquisition date, the adjusted trial balances of P and S are below. P Company s Company Assets: (Book Value) Cash $429,500 $226,000 Accounts Receivable 640,000 348,000 Inventory 970,000 447,000 Equity Investment ? PPE 4,666,000 7827,000 Total Assets S 2 $ ? Liabilities and Stockholders' Equity: Current Liabilities $718,500 $348,000 Bonds 4,000,000 500,000 Common Stock 817,500 100,000 APIC 607,500 125,000 Retained Earnings 2,512,000 775,000 Total Liabilities and Stockholders' Equity $ $ A. Prepare the journal entries for the business combination at the date of acquisition. B. Prepare the elimination entries needed to consolidate the entities. C. Prepare the allocation of the acquisition premium needed to consolidate the entities. D. Prepare a consolidation worksheet for the business combination on the date of the acquisition. E. Prepare the consolidated balance sheet on the date of the acquisition

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