Gill Corporation had the following account balances at 12/1/17:

Receivables

$ 96,000

Inventory

240,000

Land

720,000

Building

600,000

Liabilities

480,000

Common Stock

120,000

Additional Paid-In Capital

120,000

Retained Earnings, 12/1/16

840,000

Revenues

360,000

Expenses

264,000

Several of Gill's accounts have fair values that differ from book value. The fair values are: Land $500,000; Building $700,000; Inventory $330,000; and Liabilities $400,000.

Graves Inc. acquired all of the outstanding common shares of Gill by issuing 20,000 shares of common stock having a $6 par value, but a $65 fair value. Stock issuance costs amounted to $12,000. Direct combination costs amounted to $15,000. Graves also agreed to pay $30,000 to the former owners of Gill contingent on meeting certain revenue goals during the following year. Graves estimated the present value of its probability adjustment expected payment for the contingency at $18,000.

Required:

A. fair value allocation and goodwill schedule at the date of the acquisition.

B. Assume dissolution of the subsidiary has occurred. Record the journal entries to merge the subsidiary records with the parent company.