The July 31, Year 3, balance sheets of two companies that are parties to a business combination are as follows: Current assets Plant and equipment Accumulated depreciation Patents (net) Ravinder Corp. Carrying Amount $ 1,600,000 1,330,000 (250,000) Robin Inc. Carrying Amount $ 420,000 1,340,000 (500,000) Fair Valuel $ 468,000 972,000 72,000 $ 2,680,000 $ 1,260,000 Current liabilities $ 1,360,000 $ 252,000 252,000 Long-term debt Common shares Retained earnings 480,000 360,000 384,000 720,000 120,000 168,000 480,000 $ 2,680,000 $ 1,260,000 In addition to the assets identified above, Ravinder Corp. attributed a value of $100,000 to a major research project that Robin Inc. was working on. Robin Inc. feels that it is within a year of developing a prototype for a state-of-the-art bio-medical device. If this device can ever be patented, it could be worth hundreds of thousands of dollars. Effective on August 1, Year 3, the shareholders of Robin Inc. accepted an offer from Ravinder Corp. to purchase 80% of their common shares for $1,040,000 in cash. Ravinder Corp.'s legal fees for investigating and drawing up the share purchase agreement amounted to $25,000. Required: (a) Prepare the journal entries in the records of Ravinder Corp. to record the share acquisition and cost of legal fees. (If no entry is required for a transaction/event. select "No journal entry required" in the first account field.) Check my work Required: (a) Prepare the journal entries in the records of Ravinder Corp. to record the share acquisition and cost of legal fees. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No S.No. Journal A 1 Investment in Robin Inc. Cash B 2 Legal fees expense Cash Debit Credit 1,040,000 1,040,000 25,000 25,000 (b) Prepare a schedule to calculate and allocate the acquisition differential. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) Cost of 80% of Robin Inc. Implied value of 100% of Robin Inc. Carrying amount of Robin's Inc. net assets Assets Liabilities Acquisition differential Allocated: Goodwill FV-CA 0 0 Check my work (c) Prepare Ravinder Corp.'s consolidated balance sheet as at August 1, Year 3. Assume there were no transactions on this date other than the transactions described above. (Negative amounts should be indicated by a minus sign.) RAVINDER CORP. Consolidated Balance Sheet August 1, Year 3 Assets Current assets Plant and equipment Patents-net Research project Accumulated depreciation Goodwill 72,000 100,000 (250,000) $ (78,000) Liabilities and Equity Current liabilities 1,612,000 864,000 Long-term debt Common shares Retained earnings $ 2,476,000