On December 31, 2019, P company issued 5,000 shares of its $1 par common stock (current fair value $20 a share) to stockholders of S company for all the outstanding $2 par common stock of S. The merger fees were $10,000. The balance sheet of the two companies was as follow: P CORPORATION AND S COMPANY Separate Financial Statements (prior to business combination) For Year Ended December 31, 2019 P Corp. S Comp $50,000 $20,000 10,000 80,000 $10,000 $50,000 $12,000 72,000 Balance Sheets Assets Cash Inventories Other Current Assets Total Assets Liabilities and Stockholders' Equity Other Liabilities Common Stock, $1 par Common Stock, $2 par | Additional Paid-In Capital Retained Earnings Total Liabilities & Stockholders' Equity $5,000 $25,000 1,000 $2,000 3,000 2,000 80,000 72,000 On December 31, 2019, the current fair values of S company's identifiable assets and liabilities were the same as their carrying amounts, except for the Inventories which was $60,000. Instructions: 1- Prepare the journal entries for the business combinations on 31/12/2019. (6 Points) 2- Prepare the consolidated balance sheet on 31/12/2019. (4 Points)