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 Huang Book Value Fair Value Book Value Fair Value Assets Cash $1.000 $1.000 S50 $50 Receivables-net 750 1.000 25 50 Inventories 1.500 2.000 75 100 Land 1.000 1.500 50 100 Buildings-net 2.000 3,000 75 100 Equipment-net 1.500 1.500 75 100 Total assets $7.750 $10,000 $350 SSCO Equities Accounts payable SROO $50 $50 Other liabilities 1.000 900 75 Common stock, S10 par 3.000 Other paid in capital 1,200 Retained earnings 1.250 75 Total equities $72250 $350 $800 Business Combinations 49 REQUIRED 1. Prepare joumal 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