Question1(16%) The following book and fair values were available for Big Company as of April 1,2019. Book Value Fair Value Inventory $ 630,000 $ 600,000 Land 750,000 990,000 Buildings 1,700,000 2,000,000 Customer relationships 0 800.000 Accounts payable (80,000) (80,000) Common stock (2,000,000) Additional paid-in capital (500,000) Retained earnings 1/1 (360,000) Revenues (420,000) Expenses 280,000 Large Company pays $4,100,000 cash and issues 30,000 shares of its $1.5 par value common stock (fair value of $30 per share) for all of Big's common stock in a merger, after which Big will cease to exist as a separate legal entity. Stock issue costs amounts to $15,000 and Large pays $38,000 for legal fees to complete the transaction. Prepare Large's journal entry to record its acquisition of Big. (18%) Question2(18%) Pawn Company acquired 7, 000 of the 10,000 outstanding shares of Amie Company on January 1, 2016, for $840,000. The subsidiary's total fair value was assessed at $1, 200,000 although its book value on that date was $1.130.000. The $70.000 fair value in excess of Amie's book value was assigned to a patent with The following book and fair values were available for Big Company as of April 1,2019. Book Value Fair Value Inventory $ 630,000 $ 600, 000 Land 750,000 990, 000 Buildings 1,700, 000 2,000,000 Customer relationships 0 800,000 Accounts payable (80,000) (80,000) Common stock (2,000,000) Additional paid-in capital (500,000) Retained earnings 1/1 (360,000) Revenues (420,000) Expenses 280,000 Large Company pays $4,100,000 cash and issues 30,000 shares of its $1.5 par value common stock (fair value of $30 per share) for all of Big's common stock in a merger, after which Big will cease to exist as a separate legal entity. Stock issue costs amounts to $15,000 and Large pays $38,000 for legal fees to complete the transaction. Prepare Large's journal entry to record its acquisition of Big. (18%)