On January

$1$

$,$

$2$

$0$

X

$4$

$,$

$$Acme Corporation acquired

$1$

$0$

$0$

$\%$

$$of the outstanding common stock of Coyote, a foreign company

$($

amounts translated to USD

$)$

$.$

$$To acquire these shares, Acme issued to the owners of Coyote $

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$in long

$-$

term liabilities and

$2$

$0$

$,$

$0$

$0$

$0$

$$shares of common stock having a par value of $

$1$

$$per share but a fair value of $

$2$

$0$

$$per share. Acme paid $

$3$

$0$

$,$

$0$

$0$

$0$

$$to accountants, lawyers, and brokers for assistance in the acquisition and another $

$1$

$2$

$,$

$0$

$0$

$0$

$$in connection with stock issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows attached

Acme's appraisal of Coyote's fair values deemed three accounts to be undervalued: Inventory by $

$5$

$,$

$0$

$0$

$0$

$,$

$$Land by $

$2$

$0$

$,$

$0$

$0$

$0$

$,$

$$and Buildings by $

$3$

$0$

$,$

$0$

$0$

$0$

$.$

$$Acme plans to maintain Coyote's separate legal identity and to operate Coyote as a wholly owned subsidiary.

$1$

$.$

$$Prepare Acme's journal entries to record its acquisition of Coyote, related pro$2.$

$2.$ Separately determine each individual amount that Acme would report in its consolidated balance sheet following the acquisition of Coyote. Include in Acme's retained earnings any adjustments to income accounts from Part $1.$