On December 31, 2021, Parson Company acquired Sundance Company by exchanging 80,000 shares of Parson's $5 par value Common Stock with a fale value of $30 per share for all of the outstanding voting shares of Sundance. In its analysis of the investee company, Parson valued all of Sundance's assets and liabilities at an amount equaling their book values except for a building that is undervalued by $400,000 (e, fair value book valuel, an unrecorded License Agreement with a fair value of $200,000, and an unrecorded Customer List owned by Sundance with a fair value of $100,000. Any further discrepancy between the purchase price and the book value of Sundance's Stockholders' Equity was attributed to goodwill. Parson paid $35,000 to an investment bank for assisting in the arrangements and paid $28,000 in stock issuance costs for the acquisition of Sundance. Sundance would no longer exist as a legal entity after the acquisition The separate balance sheets for Parson and Sundance for the year ending December 31, 2021, just prior to their combination, follow. Cash Accounts Receivable Inventory Buildings Total assets Accounts Payable Long-term Liabilities Common Stock Additional Paid in Capital Retained Earnings, Dec. 31, 2021 Total liabilities and stockholders equity Note: Parentheses indicate a credit balance. 2021: - Cash . Buildings Additional Paid in Capital Parson S 200,000 400,000 500,000 2.400.000 900.000 3.700.000 $ 2.000.000 (150,000) $ (460.000) (540,000) (1,450,000) 1.100.000 $ 13.200.000 $12.000.000) Sundance 480,000 $ 300,000 520,000 Required: Of needed, provide supporting calculations to obtain credit) 1. (6 points) How much goodwill must be reported from the business combination? 2.(12 points) Prepare the journal entries to record the business combination and other related costs at the acquisition date. 3. Sundance continued as a separate legal entity and became the subsidiary of Parson after the acquisition, do the following: A (5 points) Prepare the journal entries made in Parson's books at the acquisition date B. (9 points) Without preparing a worksheet, prepare the consolidation entries made into the consolidation worksheet for the year ended on December 31, 2021 C (8 points) Without preparing a worksheet, determine the consolidated totals of the following accounts as of December 31, (100,000) (320,000) (100,000) (580,000) 19:00.0001