Sandy's Corporation's statement of financial position at January 2,2020 is as follows: Debit Credit Cash and Receivables 200,000 Inventory 600,000 Property, plant and Equipment, net 7,500,000 Current Liabilities 400,000 Long-term Liabilities 7,200,000 Common stock 7,200 Retained earnings 25,000 An analysis of Sandy's assets and liabilities reveals that book values of some reported items do not reflect their market values at the date of acquisition: Inventories are overvalued by 200,000 Property, Plant, and Equipment (net) is overvalued by 2,000,000 Long-term debt is undervalued by 100,000. In addition, the following items are not currently reported on Success' statement of financial position: Customer contract, valued at 25,000 Skilled workforce, valued at 45,000 In process research and development, valued at 300,000 Potential contracts with prospective customers, valued at 15,000 Success has not recorded expected future warranty liabilities with a present value of 10,000 On January 2, 2020, Velasco issues new stock with a market value of 700,000 to acquire the assets and liabilities of Success. Stock registration fees are 100,000 and consulting, accounting and legal fees connected with the merger are 150,000, paid in cash. In addition, Velasco enters into an earnings contingency agreement, whereby Velasco will pay the former shareholders of Sandy an additional amount if Sandy's Performance meets certain minimum levels. The present value of the contingency is estimated at 50,000. Requirements: 1. From the above transactions, applying the accounting method for business combination who is the acquiree and how much is the consideration transferred? 2. The market value of assets and liabilitieset sales acquired amounted to? Explain your answer in three to five sentences 3. The amount of goodwill in the books of acquirer amounted to? 4. The total liabilities after combination amounted to? 5. The total stockholders'/shareholders' equity after combination amounted to? Explain your answer in three to five sentences