On January 2, 2020, Parent Corporation and Subsidiary Company decided to make a business combination. From their agreement, both companies would set up a new legal business entity, named "Holding Company". Then, the Parent Corporation and Subsidiary Company would transfer their net assets to the Holding Company, and in exchange the Holding Company would issue its new capital stocks to both companies' shareholders. After transferring all net assets, Parent Corporation and Subsidiary Company would dissolve. The Holding Company issued 100,000 new shares of its $5 par value common stock, an appraisal value was $19 a share, for all of Subsidiary Company's outstanding common shares. The Holding Company issued 140,000 new shares of its $5 par value common stock, an appraisal value was $19 a share, for all of Parent Corporation's outstanding common shares. The Holding Company paid $55,000 to register and issue shares, and also paid $30,000 for the direct combination costs of the accountants. The fair value and book value of Subsidiary's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2020 is as follows: Parent - FV 150 350 500 450 3,500 : $000 Cash Inventories Other current assets Land Plant assets Accumulated depreciation Total assets Accounts payable Notes payable Common stocks, $5 par Additional paid-in capital Retained Earnings Total Liabilities & Equities Parent - BV 150 320 500 350 8,000 (4,000) 5,320 1,000 1,300 2,000 1,000 20 5,320 Subsidiary - BV 120 400 500 250 2,000 (500) 2,770 300 660 500 100 1,210 2,770 1,000 1,200 Required: 1. Prepare Holding's general journal entry for the acquisition of Parent Corporation and Subsidiary Company. 2. Prepare the Financial Position Statement of Holding Company on January 2, 2020, after business combination