Question 2 (50 points). On January 1, 2021. Party Corporation acquired Surprise Corporation's net assets by paying 135,000 cash. Balance sheet data for the Party & Surprise and fair value information for Surprise immediately before the business combination are given below. Party Surprise Assets Book Value Book Value Fair Value Cash & receivables 220,000 37,000 37,000 Inventory 100,000 38,000 42,500 Land 75,000 50,000 53,000 Plant, Property and Equipment 250,000 120,000 80,000 Less: Accumulated Depreciation -95,000 -52.000 Total 550,000 193,000 212,500 Liabilities and Stockholders' Equity Accounts Payable 62,000 35,000 37,500 Notes Payable 135,000 13,000 13,000 Bonds payable 100,000 35,000 35,000 Common Stock 60,000 30.000 Additional Paid-in Capital 100,000 45,000 Retained Earnings 93.000 35,000 Total 550.000 193.000 Required: a. Prepare the journal entry to record the acquisition of Surprise Corporation. (35 points). b. What would the balance of land 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). o S w