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 51,695 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: Revenues Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash Receivables and inventory Property, plant, and equipment Trademarks Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Seguros Seguros Book Fair Pacifica Values Values $(1,810,000) 1,267,000 $ (543,000) $(1,031,000) (543,000) 96,000 $(1,478,000) $ 198,000 $ 134,000 $ 134,000 267,000 89,000 74,400 2,000,000 446,000 598,500 398,000 240,000 299,000 $ 2,863,000 $ 909,000 $ (510,000) $ (204,000) $ (204,000) (400,000) (200,000) (475,000) (70,000) (1,478,000) (435,000) $(2,863,000) $ (909,000) In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $106,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,200 in connection with the acquisition and $11,200 in stock issue costs. a. Prepare Pacifica's entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. b.&c. Present a worksheet showing the postacquisition column of accounts for Pacifica and the consolidated balance sheet as of the acquisition date