On January 1, 2023, ABC Corporation acquired 100% of the outstanding common stock of XYZ Company for a purchase price of $10 million. The fair value of XYZ Company's identifiable net assets at the acquisition date was as follows:

- Cash: $1 million
- Accounts Receivable: $2 million (net of allowance for doubtful accounts of $200,000)
- Inventory: $3 million
- Property, Plant, and Equipment: $6 million (with a remaining useful life of 10 years and no salvage value)
- Goodwill: $1 million

The fair value of XYZ Company's liabilities at the acquisition date was $4 million.

Additional information:

1. XYZ Company's inventory includes obsolete items with a fair value of $500,000 which were not recognized in the fair value assessment.

2. ABC Corporation incurred $500,000 in direct acquisition costs.

3. XYZ Company reported a trademark on its books with a carrying value of $500,000. However, an independent valuation determined that the fair value of the trademark is $1 million.

4. XYZ Company had a contingent liability related to a pending lawsuit. ABC Corporation estimated the fair value of the contingent liability to be $2 million.

5. ABC Corporation uses the acquisition method to account for business combinations.

Required:

1. Calculate the total consideration transferred by ABC Corporation for the acquisition of XYZ Company.
2. Prepare the journal entries on ABC Corporation's books to record the acquisition of XYZ Company.
3. Calculate the amount of goodwill recognized by ABC Corporation.
4. Determine the carrying value of each of XYZ Company's identifiable net assets on ABC Corporation's books after the acquisition.
5. Provide the adjusted journal entries required to reflect the fair value adjustments and other necessary adjustments on ABC Corporation's books.