On 8/1/22 Big acquired Little in a transaction to be accounted for as a merger.Trial balances for Big and Little at that date are as follows: BIG LITTLE Cash and receivables 39 42 Inventory 54 57 PPE 759 669 Accumulated depreciation 210 231 Patents 60 72 Required: Current liabilities 39 33 1. Form all entries associated with the acquisition on 8/1/22 Bonds payable 231 252 2. Prepare the entry/entries associated with the final contingent consideration at the end of 3 years. Common Stock 15 45 Paid in capital in excess of par 60 0 Retained earnings 273 231 Sales 459 432 Cost of goods sold 315 294 Other expenses 60 90 84 48 Little's inventory was undervalued by $18, while their PPE was Undervalued by $63 Little's bonds payable were undervalued by $12 Big issued 174 shares of $1 par value common stock to acquire Little. These shares were worth $7.65 per share at the date of acquisition. Stock issuance costs of $591 were incurred. Legal costs associated with the acquisition were $3793 In addition to the immediate compensation, there was also a contingent consideration agreement. If compound earnings growth over the first 3 years exceeded 6%, an additional 1004 shares of stock would be issued to Little's former owners. Big management belives there's a 32% chance that target will be attained. At the end of 3 years, actual earnings growth comes in at 8%. total cost Inventory 18 PPE 63 Bonds 12 Shares issued 174 Value per share 7.65 Stock issuance costs 591 Legal and accounting costs 3793 Contingent shares 1004 Likelihood 32