Name: Como acquired 100 percent of S Corp's common shares on January 1, 2020 by issuing 200.000 of P's common shares at 852 a share ($10,400,000 total acquisition price). P's common share have a par value of $10 a share. After P acquires S, S will dissolve as a separate legal entity. The acquisition also incurred direct merger related costs of $20,000 and stock-issue costs of $15.000 all paid on January 1. Further examination of S Corp's balance sheet below provides book and fair values: S Corporation's Balance Sheet (January 1, 2020) Cash and Receivables Inventories Land Buildings and Equipment (net) Intangibles (net) Totals Book Value Fair Value Difference $120,000 $ 120,000 $ 1,470,000 1,390,000 $ (80,000) 100,000 1,000,000 $ 900,000 500,000 580,000 $ 80,000 600,000 5,100,000 $4,500,000 $ 2,790,000 $ 8,190,000 $5,400,000 Current Liabilities Bonds Payable (net of discount) Totals 90,000 90,000 1,100,000 1,200,000 $ 1,190,000 5 1,290,000 100,000 100,000 500,000 1,190,000 - 1,600,00 Common Stock ($5 par, 100,000 shares issued and outstanding) Contributed Capital Totals 1,100,000 $ 1,600,000 116000 Instructions: On the paper provided, using the above data: 1. Calculate the allocation of the acquisition price at January 1, 2020, showing if goodwill resulted 2. Record the necessary journal entries on P's books at January 1, 2020 to record the acquisition of S. Separately record the direct combination costs and stock-issue costs. Be sure to put your name on this sheet and your answer sheet, turning in both sheets