On Dec 31, Padre Corp. acquired all of S issuing 10,000 shares of Padre's own com Padre Corp. acquired all of Sol Company stock by paying $360,000 in cash and UUU shares of Padre's own common stock with a par value of $20 per share and netair value of $40 per share. Padre paid legal/accounting fees of $20,000 and $5,000 in suance costs. Key financial information for Padre and Sol, just prior to the acquisition, follows below: Cash Receivables Inventory Land Building & equipment (net) Franchise agreements Accts Payable Accrued Expenses Long Term Debt Common Stock: Padre (par $20 per share) Sol (par $5 per share) Additional Paid in Capital Retained Earnings 1/1 Revenues Expenses Padre Book Val $400,000 $220,000 $410,000 $600,000 $600,000 $220,000 ($300,000) ($90,000) ($900,000) Sol Company Book Val. Fair Val. $120,000 same $300,000 same $210,000 $260,000 $130,000 $110,000 $270,000 $330,000 $190,000 $220,000 ($120,000) same ($30,000) same ($510,000) same a ($660,000) ($70,000) ($390,000) ($960,000) $920,000 ($210,000) ($90,000) ($240,000) ($330,000) $310,000 Net Dr = (Cr) $0 Assume Sol will continue its corporate identity as a 100% subsidiary of Padre. REQUIRED: A. Calculate the value of the Investment in Sol, including fair value adjustments and any part of the purchase applicable to Goodwill. B. Calculate values for consolidated financial statements as of the date of acquisition for the following accounts: Inventory Land Buildings & equipment Franchise agreements Goodwill Revenues Additional paid in capital Expenses