Question 2 (50 points). On January 1, 2021, Party Corporation acquired Surprise Corporation's net assets by paying 175,000 cash. Balance sheet data for the Party & Surprise and fair value information for Surprise immediately before the business combination are given below: Party Book Value 250,000 100,000 75,000 250,000 -95,000 580,000 Surprise Book Value 35,000 58,300 33,500 120,000 -36,800 210,000 Fair Value 35,000 65,000 35,700 110,000 245,700 Assets Cash & receivables Inventory Land Plant, Property and Equipment Less: Accumulated Depreciation Total Liabilities and Stockholders' Equity Accounts Payable Notes Payable Bonds payable Common Stock Additional Paid-in Capital Retained Earnings Total 37,500 13,000 35,000 72,000 125,000 100,000 60,000 125,000 98,000 580,000 35,000 13,000 35,000 30,000 45,000 52,000 210,000 Required: a. Prepare the journal entry to record the acquisition of Surprise Corporation. (35 points). b. What would the balance of inventory be in the balanced sheet of combined company immediately after the combination? (5 points). c. What would the balance of accounts payable be in the balanced sheet of combined company immediately after the combination? (5 points). d. What would the balance of common stock be in the balanced sheet of combined company immediately after the combination? (5 points)