On January 1, 2018, Ruth Corporation acquired 100 percent of Orange Company's outstanding common stock. In exchange for Orange's stock, Ruth paid $650,000 in cash directly to the selling stockholders of Orange. The two companies continued to operate as separate entities after the combination. Immediately prior to the combination, the book values and fair values of the Orange's assets and liabilities were as follows Book Value Fair Value Balance Sheet Cash Receivables (net) Inventory Land Patent Buildings & Equipmen Total Assets 9,000 30,000 68,000 50,000 9,000 30,000 62,000 80,000 40,000 500,000 721,000 450,000 607,000- Current Payables Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equity 29,000 100,000 200,000 130,000 148,000 607,000 29,000 90,000 Assume the differences in the book values to fair values are as follows: inventory 1-year, land indefinite, patent 10-years, building and equipment 10-years, and bonds payable 2-years. Required. 1. Prepare, in good form, an allocation schedule of the excess fair value of the compensation paid 2. Prepare the journal entry to record the business combination on the books of Ruth Corporation 3. Prepare the journal entry to record the business combination on the books of Ruth Corporation 4. Prepare elimination entry "A" for 2018 and 2019 by Ruth and calculate the annual excess amortization as of 1/1/18 if the two entities continue to exist as separate entities. as of 1/1/18 if Orange was dissolved and was no longer an operating entity