LO 1 E2.2 Post-Combination Balance Sheet: Three Types of Combinations Presented below are the bal- ance sheets of Allen Corporation and Benson Corporation, immediately prior to a business combination. The fair values of Benson's net assets equal their book values. Cash.. Other current assets. . . Property, plant and equipment. Total assets Current liabilities.. Long-term liabilities Common stock.. Additional paid-in capital Retained earnings Total liabilities and equity.. Allen Corp. Benson Corp... $ 400,000 $ 50,000 600,000 1,200,000 150,000 400,000 $2,200,000 $600,000 $ 300,000 $100,000 600,000 250,000 200,000 100,000 300,000 50,000 800,000 100,000 $2,200,000 $600,000 Required a. Prepare the acquisition entry and the balance sheet of Allen Corporation after each of the following business combinations: (1) Allen acquires Benson for $300,000 cash in a transaction recorded as a statutory merger. (2) Allen acquires Benson for $300,000 cash in a transaction recorded as a stock acquisition. (3) Allen acquires the noncash net assets of Benson for $250,000 cash.