QUESTIONS Question 1 (50 points). Flower Company was established on January 1, 2017. Along with other assets, it Immediately purchased land for S120,000, und a building S180,000. On January 1, 2021, Flower transferred these assets, cash of $30,000, and inventory costing 550.000 to a newly created subsidiary, Sparrow Company, in exchange for 50,000 thares of Sparrow's $5 par value stock. Flower uses straight line depreciation and useful life of 30 years for the building, with no estimated residual values. Requiredi o. Give tha joumal entry that Flower recorded for the transfer of assets and liabilities to Sparrow (25 points) b. Give the journal entry that Sparrow recorded for the receipt of assets and liabilities from Flower (25 points). Question 2 (50 points). On January 1, 2021. Party Corporation acquired Surprise Corporation's not 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 $3,000 Prant, Property and Equipment 250,000 120,000 80,000 Les Accumulated Depreciation -95,000 -52,000 Total 550.000 (193.000 5212.500 Liabilities and Stockholders' Equity Accounts Payable C52,000 35,000 37,500 Notes Payable 135.000 13.000 13,000 Bonds payable 100,000 35,000 35.000 Common Stock 50,000 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 texto record the acquisition of Surprise Corporation (15 points), b. What would the balance of land be in the balance sheet of combined company immediately after the combination is paints) What would the balance of CBR be in the balance sheet of combined company immediately after the combination is points). & What would the balance of commentek be in the balanced sheet at combined company immediately weer the combination (points)