Hi, please help! You only need to do part (b) for this question. The worksheet should follow the exact same format as the second graph. Thank you!

Illustration #1-Net Asset Acquisition (Ch. 1) Pepper Company, which is a calendar-year-reporting company, purchased 100% of the net assets of Salt Inc. for $325,000 on 12/31/15. Assume that the asset acquisition qualifies as a business combination under FASB ASC 805. Pepper declared dividends of $80,000 and Salt declared dividends of $1 0,000 during 2015 Each company's financial statements for the year ended 12/31/15 are as follows: Income Statement (2015) Pepper Co Salt Co Sales Cost of sales Expenses redt-(900,000) 500,000 260,000 (140,000) (500,000) 250,000 202,000 48,000 Net Income Balance Sheet (as of 12/31/15) Cash Accounts receivable Inventory Land Buildings and equipment Accumulated depreciation 370,000 75,000 105,000 100,000 250,000 (150,000) 750,000 20,000 70,000 80,000 70,000 220,000 (60,000) 400,000 Total Assets Payables and accruals Bonds payable Common stock Retained earnings (60,000) (150,000) (100,000) (90,000) Total Liabilities and Equity750,000) (400,000 (80,000) (20,000) (300,000) (350,000) Required Prepare a worksheet assuming that Pepper acquired 100% of the net assets of Salt on 12/31/15 and that the book values of Salt's net assets approximated fair value on the acquisition date. a. Prepare a worksheet assuming that Pepper acquired 100% of the net assets of Salt on 12/31/15 and that the following net assets of Salt had fair values different than book value on the acquisition date. b. FMV 75,000 100,000 210,000 Cost Inventory Land Building and equipment, net Covenant-not-to-complete (i fnble) Bonds payable 80,000 70,000 160,000 40,000 150,000 175,000 Uke pemom f erertllg Econ. 139 (Harmon) revised Jan. 2017