HW $3-8$: Prego Acquisition of Spaghetti Company

The following are the account balances of Prego Company and Spaghetti Company as of December $31,2025.$ The

fair values of Richmod Company's assets and liabilities are also listed.

Prepare the journal entries required by Prego Company for the acquisition of Spaghetti Company at january $1,2026$

Prepare the workpa per entry to eliminate Spaghetti Company companys equity accounts against the investment account and accounting for the fair value of the net identifiable assets of Spaghetti Company.