Question 2 On January 1, 2021, Party Corporation acquired Surprise Corporation's net assets by paying 155,000 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 250,000 45,000 45,000 Inventory 100,000 33,000 37,000 Land 75,000 43,500 50,000 Plant, Property and Equipment 220,000 135,000 110,000 Less: Accumulated Depreciation -95,000 -36,800 Total 550,000 219,700 242,000 Liabilities and Stockholders' Equity Accounts Payable 72,000 55,000 60,000 Notes Payable 125,000 12,500 12,500 Bonds payable 100,000 35,000 35,000 Common Stock 60,000 32,000 Additional Paid-in Capital 95,000 50,000 Retained Earnings 98,000 35,200 Total 550,000 219,700

Required: a. Prepare the journal entry to record the acquisition of Surprise Corporation.

b. What would the balance of land be in the balanced sheet of combined company immediately after the combination?

c. What would the balance of accounts payable be in the balanced sheet of combined company immediately after the combination?

. d. What would the balance of retained earnings be in the balanced sheet of combined company immediately after the combination?