Question $1$: $(15$ Points$)$: A$1,$ A$3,$ B$1,$ C$1,$ C$3$

On Dec $31,2022,$ Lama Corporation acquired all the net assets of Jawad Corporation directly from the owner for $$150,000$ cash, in a business combination. lama paid legal fees of $$80,000$ in connection with the combination.

Jawad's Balance sheet prior to the business combination shows the following:

Jawad Company $($Combine$)$

Balance Sheet $($prior to business combination$)$

December $31,2022$

Carrying Amounts Current Fair Values

Assets

Current assets $ $20,000$ $ $40,000$

Plant assets $($net$)200,000230,000$

Intangible assets $($net$)70,00090,000$

Total Assets $ $290,000$ $ $360,000$

Liabilities and Stockholder$$s Equity

Current liabilities $ $50,000$ $ $50,000$

Long$-$term debt $100,000130,000$

Total liabilities $ $150,000$ $ $180,000$

Common stock, $$1$ par $ $100,000$ Total stockholders$$ equity $ $40,000$ Total liabilities and stockhoders$$equity $ $290,000$

Instruction:

$1-$ Prepare journal entries on December $31,2022,$ for Lama Corporation to record the business combination with Jawad Company. $(10$ Points$)$

Goodwill$=$ Company price $$ NFMV

$=150000-(360000180000)$

Net goodwill $=30000$

$1-$ Investment in Lama Corporation $150,000$

Cash $150,000$

$2-$ Merger expense $80,000$

Cash $80,000$

$3-$ Current assets $40,000$

Plant Assets $($net$)230,000$

Intangible assets $90,000$

Investment in Lama Corporation $150,000$

Current liabilities $50,000$

Long term debts $130,000$

Net Goodwill $30,000$

$2-$ Prepare the journal entries which must be prepared by Jawad company and explain your answer. $(5$ Points$)$ i need the answer ofquestion $2$ asap