On January 1, 2015, Casey Corporation exchanged $3,300,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: $3,300,000 2,600,000 $ 700,000 Fair value of Kennedy (consideration transferred)... Carrying amount acquired...... Excess fair value to buildings (undervalued) to licensing agreements (overvalued) ....... to goodwill indefinite life)......... $382,000 (108,000) 274,000 $426,000 Immediately after closing the transaction, Casey and Kennedy prepared the following post- acquisition balance sheets from their separate financial records. Accounts Cash ............. .......................... 3 .. Accounts receivable. Inventory..... Investment in Kennedy. ... Buildings (net) ....................... Licensing agreements.................... Goodwill ......... Total assets ............ Casey $ 4 5.000 457,000 1,655,000 1,310,000 3,300,000 6,315,000 -0- 347.000 $ 13,384,000 Kennedy $ 172,500 347,000 263,500 -0- 2,090,000 3,070,000 -0- $5,943,000 H e a LHEIL U N EI EU . - - - - - . . . . . . - - - . . . . . . . . . . . . . Accounts payable.. Long-term debt... Common stock .. Additional paid in capital. ..... Retained earnings .... Total liabilities and equities. ....... (394,000) 3,990,000) (3,000,000) -0- (6,000,000) $(13,384,000) $ (393,000) (2,950,000) (1,000,000) (500,000) (1,100,000) $(5,943,000 Required: 1. Prepare journal entries to record the acquisition & payment of combination costs (if any)