Sally Company is acquired by Pat Company on Jan 1, 2021. Patty exchanges 60,000 shares of its $1 par value, with a fair value of $18 per share, for the net assets of Sally Company. Pat incurs of the following costs as a result of this transaction: Acquisition costs Stock registration and issuance costs $25,000 $10,000 The balance of accounts in the book and fair value on the day of acquisition in the Sally Company, is as follows: Book Value Fair Value Cash $100,000 $100,000 Inventory 250,000 270,000 Land 200,000 180,000 Building-net 250,000 300,000 Equipment-net 200,000 220,000 Current liabilities 80,000 80,000 Bonds payable 500,000 425,000 Common stock 200,000 Additional paid in capital 100,000 Retained earnings 120,000 Instruction: 1. Prepare the analysis for this business combination 2. Prepare the general journal entry for the acquisition 3. Prepare the general journal entry for record the indirect and direct cost for acquisition 4. Prepare the general journal entry for record the business combination in its accounting books