Problem #1 (5 points) Pam Corporation issues 50,000 shares of its own $10 par common stock for all the outstanding stock of Sam Corporation in merger consummated on July 1, 19X7 (Sam Corporation dissolved). On this date, Pam stock is quoted at $23 per share. For this acquisition, Pam paid $10,000 legal fee and $5,000 for printing new stocks. Summary balance sheet data for the two companies at July 1, 1987, just before combination, are as follow: Accounts Receivable Plant assets Total assets Pam Corporation Book Value Mkt Value $2,800,000 $2,700,000 2,200,000 $2,500,000 $5.000.000 $5,200,000 Saam Corporation Book Value Mkt Value ! $250,000 $230,000 S 4,0 650,000 850,000+ I $900,000 $1,200,000 $200,000 Accounts Payable Common stock--$10 par Additional paid-in capital Retained earnings Total Equities $1,200,000 3,000,000 300,000 500.000 $5,000,000 $200,000 350,000 100,000 250,000+ $900.000 An unrecorded patent for the amount of $100,000 with remaining useful life of 10-years was acquired from Saam Corporation in the process of acquisition Required: 1. If the business combination is treated as a purchase, show the journal entries for this acquisition. Show all your calculations. 2. Prepare balance sheet for Pam Corporation right after the acquisition tt