On January 2, 2019, Birch Corporation issued 35,000 of its own $10 par common stock for all of the outstanding stock of Tree Corporation in an acquisition. Tree is dissolved. Additionally, Birch pays $50,000 for registration fees associated with the stock issuance, and $75,000 for other expenses related to the acquisition. The market price of Birch's stock on January 2, 2019 is $50 per share. Relevant balance sheet information for Birch and Tree Corporations on December 31, 2018 just before the combination is as follows (in thousands):

Birch Historical Cost Tree Historical Cost Tree Fair Value'

Cash 250 30 35

Inventories 300 70 140

Other current assets 440 100 120

Land 130 50 250

Plant and equipment - net 1,470 350 800

Total assets 2,590 600 1,345

Liabilities 500 50 60

Capital Stock, $10 par 1,200 300

Additional paid-in-capital 350 150

Retained earnings 540 100

Total liabilities and owner's equity 2,590 600

Required 1. Prepare the preliminary calculations for the acuqisition of Tree.2. Prepare all the journal entries to record the acquisition of Tree (show all of your work and place your calculations in the cells.).3. Prepare balance sheet for Birch Corporation immediately after the acquisition. (Prepare the worksheet to combine prior to preparing the combined balance sheet.)