On January 1, 2019, North Corporation acquired all of South Corporation's outstanding stock for $400,000. North paid $200,000 in cash and issued a three year 8 percent note for the balance. South Corporation was dissolved. Relevant balance sheet information for North and South Corporations on December 31, 2018 just before the combination is as follows (in thousands):

North Historical Cost South Historical Cost South Fair Value

AssetsCash 215 5 5

Receivables - net 50 15 15

Inventories 110 70 50

Land 50 50 100

Buildings - net 210 110 170

Equipment - net 150 95 200

Total assets 785 345 540

Accounts Payable 80 40 40

Other liabilities 110 50 70

Capital Stock, $10 par 400 140

Additional paid-in-capital 80 70

Retained earnings 115 45

Total liabilities and owner's equity 785 345

Required 1. Prepare the Preliminary Calculations to determine the amount of goodwill or gain on bargain purchase, if any. 2. Prepare all of the journal entries to record the acquisition of South (show all of your work and place your calculations in the cells.) 3. Prepare a balance sheet for North Corporation immediately after the acquisition. (January 1, 2019) Prepare the worksheet to combine the balance sheet before you prepare the balance sheet.