On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued Pacifica common shares ($20 market value, $5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31 of the following year. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money. Immediately prior to the acquisition, the following data for both firms were available: Table Summary: A text column and 3 amount columns. First row is a header row and has no data over the first column. The first amount column is filled. The second amount column is empty for the first section, up through retained earnings 12/31. The final column is also empty for this section of rows and also the Total assets row and the last 4 rows. Pacifica Seguros Book Values Seguros Fair Values Revenues $(1,200,000) Expenses 875,000 Net income $(325,000) Retained earnings, 1/1 $(950,000) Net income (325,000) Dividends declared 90,000 Retained earnings, 12/31 $ (1,185,000) Cash $110,000 $85,000 $85,000 Receivables and inventory 750,000 190,000 180,000 Property, plant, and equipment 1,400,000 450,000 600,000 Trademarks 300,000 160,000 200,000 Total assets $2,560,000 $885,000 Liabilities $(500,000) $(180,000) $(180,000) Common stock (400,000) (200,000) Additional paid-in capital (475,000) (70,000) Retained earnings (1,185,000) (435,000) Total liabilities and equities $(2,560,000) $(885,000) In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,000 in connection with the acquisition and $9,000 in stock issue costs. Prepare the following: Pacificas entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a 0.961538 present value factor where applicable.) A postacquisition column of accounts for Pacifica. A worksheet to produce a consolidated balance sheet as of the acquisition date.