REFERENCE: 02-07 Presented below are the financial balances for the Boxwood Company and the Tranz Company as of December 31, 2021, immediately before Boxwood acquired Tranz. Also included are the fair values for Tranz Company's net assets at that date.

Boxwood Tranz Co. Tranz Co Book Value Book Value Fair Value 12/31/21 12/31/21 12/31/21 Boxwood Tranz Co. Tranz Co Book Value Book Value Fair Value 12/31/2021 12/31/2021 12/31/2021 Cash 870,000.00 240,000.00 240,000.00 Receivables 660,000.00 600,000.00 600,000.00 Inventory 1,230,000.00 420,000.00 580,000.00 Land 1,800,000.00 260,000.00 250,000.00 Buildings (net) 1,800,000.00 540,000.00 650,000.00 Equipment (net) 660,000.00 380,000.00 400,000.00 Accounts payable 570,000.00 240,000.00 240,000.00 Accrued expenses 270,000.00 60,000.00 60,000.00 Long-term liabilities 2,700,000.00 1,020,000.00 1,120,000.00 Common stock ($20 par) 1,980,000.00 Common stock ($5 par) 420,000.00 Additional paid-in capital 210,000.00 180,000.00 Retained earnings 1,290,000.00 520,000.00 Revenues 2,880,000.0 660,000.00 Expenses 2,760,000.00620,000.00 Assume a business combination took place at December 31, 2017. Boxwood issued 50,000 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Tranz. Stock issuance costs of $15 ,000 and direct costs of $10,000 were paid to effect this acquisition transaction. To settle a difference of opinion regarding Tranzs fair value, Boxwood promises to pay an additional $5,200 to the former owners if Tranzs earnings exceed a certain sum during the next year. Given the probability of the required contingency payment and utilizing a 4% discount rate, the expected present value of the contingency is $5,000 1. Calculate the amount paid (consideration) for the acquisition of Common Shares Tranz Company and prepare the journal entry to record the acquisition 2. Prepare analysis to Determine the Valuation Difference 3. Prepare the journal entries for the consolidation Adjustment 4. Prepare a Working Paper por the Consolidated Balance Sheet as of December 31 2021