The July 31, Year 3, balance sheets of two companies that are parties to a business combination are as follows: Ravinder Corp. Carrying Robin Inc. Carrying Amount Amount Current assets $ 1,601,900 $ 420,950 $ Plant and equipment 1,331,900 1,341,900 Accumulated depreciation (250,950) (501,900) Patents (net) Fair Value 471,800 975,800 73,900 $ 2,682,850 $ 1,260,950 Current liabilities Long-term debt Common shares Retained earnings $ 1,361,900 $ 253,900 253,900 481,900 360,950 385,900 721,900 169,900 $ 117,150 2,682,850 476,200 $ 1,260,950 In addition to the assets identified above, Ravinder Corp. attributed a value of $101,900 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 $1,116,000 in cash. Ravinder Corp.'s legal fees for investigating and drawing up the share purchase agreement amounted to $25,950. 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.) No S.No Journal A 1 Investment in Robin Inc. Cash B 2 Legal fees expense Cash Debit 1,084,000 X Credit 1,084,000 25,550 x 25,550 (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. $ 1,084,000 $ 1,355,000 x Carrying amount of Robin's Inc. net assets Assets $ (1,260,550) Liabilities Acquisition differential Allocated: 662,750 x (597,800) 757,200 FV - CA Current assets $ 49,650 x Plant and equipment 134,200 Research project 101,100 x Patents 73,100 x Long-term debt 24,550 x 382,600 Goodwill $ 374,600 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.