P1-5 Journal entries and balance sheet for an acquisition Ling Corporation decided to acquire all of Huang Corporation's voting common stock on January 1, 2017. The purchase price consisted of $10,000 for the registering and issuing of 10,000 shares of Ling Corporation. The market value of the issuance of these shares is $300,000. The purchase price also includes $30,000 for accounting and legal fees. However, Ling is undecided on the additional amount of cash to be paid. Balance sheet information for the companies on December 31, 2016, is summarized as follows (in thousands): Ling Book Value Huang Fair Value Book Value Fair Value Assets Cash Receivables-net Inventories Land Buildings-net $1,000 750 $1,000 $50 $50 1,000 1,500 2,000 1,000 1,500 2,000 3,000 2282 25 50 75 100 50 100 75 100 Equipment-net 1,500 1,500 75 100 Total assets $7,750 $10,000 $350 $500 Equities Accounts payable $800 $800 $50 $50 Other liabilities 1,000 900 75 75 Common stock, $10 par 3,000 100 Other paid-in capital 1,200 50 Retained earnings 1,750 75 Total equities $7,750 $350 Business Combinations 49 REQUIRED 1. Prepare journal entries and a balance sheet for Ling Corporation immediately after the acquisition if it decides to include $50,000 of cash in the purchase price. 2. Prepare journal entries and a balance sheet for Ling Corporation immediately after the acquisition if it decides to include $100,000 of cash in the purchase price