2. Consolidating Entries (35 points) Bates Corporation purchased 100% of the common stock of Johns Inc. on January 2, 2021. Johns balance sheet on January 2, 2021 was as follows: Accounts receivable-net $350,000 Inventory Current liabilities $250,000 300,000 250,000 Long term debt Common stock ($1 par) Paid-in capital Retained carnings Total Liabilities & Equity $1,370,000 Land 200,000 45,000 Building-net Equipment-net 450,000 300,000 120,000 475,000 Total Assets $1,370,000 Fair values agree with book values except for inventory, land, and equipment that have fair values of $275,000, $150,000 and $150,000, respectively. Johns has unrecorded patent rights valued at $75,000. Prepare a schedule to assign values to Johns' post- acquisition assets and liabilities assuming Bates paid $1,000,000 cash for the acquisition. Prepare the consolidation entries for a January 2, a. b. 2021 consolidated balance sheet