Q2: Mohammed company purchased the assets and liabilities of Fahad Company at the close of business on December 31, 2019. Mohammed borrowed $2,000,000 to complete this transaction, in addition to the $640,000 cash that they paid directly. The fair value and book value of Ahmed recorded assets and liabilities as of the date of acquisition are listed below. In addition, Ahmed had a patent that had a fair value of $50,000. Cash Inventories Other current assets Land Plant assets-net Total Assets Book Value $120,000 220,000 630,000 270,000 4,650,000 $5,890,000 Fair Value $120,000 250,000 600,000 420,000 4,500,000 $1,200,000 2,100,000 Accounts payable Notes payable Capital stock, $5 par Additional paid-in capital Retained Earnings Total Liabilities & Equities $1,200,000 2,100,000 700,000 1,400,000 490,000 $5,890,000 Required: 1. Prepare Mohammed general journal entry for the acquisition of Ahmed, assuming that Ahmed survives as a separate legal entity. 2. Prepare Mohammed's general journal entry for the acquisition of Ahmed, assuming that Ahmed will dissolve as a separate legal entity. Q2: Mohammed company purchased the assets and liabilities of Fahad Company at the close of business on December 31, 2019. Mohammed borrowed $2,000,000 to complete this transaction, in addition to the $640,000 cash that they paid directly. The fair value and book value of Ahmed recorded assets and liabilities as of the date of acquisition are listed below. In addition, Ahmed had a patent that had a fair value of $50,000. Cash Inventories Other current assets Land Plant assets-net Total Assets Book Value $120,000 220,000 630,000 270,000 4,650,000 $5,890,000 Fair Value $120,000 250,000 600,000 420,000 4,500,000 $1,200,000 2,100,000 Accounts payable Notes payable Capital stock, $5 par Additional paid-in capital Retained Earnings Total Liabilities & Equities $1,200,000 2,100,000 700,000 1,400,000 490,000 $5,890,000 Required: 1. Prepare Mohammed general journal entry for the acquisition of Ahmed, assuming that Ahmed survives as a separate legal entity. 2. Prepare Mohammed's general journal entry for the acquisition of Ahmed, assuming that Ahmed will dissolve as a separate legal entity