Using the information provided below, complete the entries required at December 31, 2018 for the business combination of PH Inc. and J Incorporated under ASC 470. (Assume that the preliminary purchase accounting adjustments have already been made.) On December 31, 2016, PB, Inc. purchased al of the outstanding stock of J Incorporated for $20,000,000. For tax purposes the transaction is considered non-taxable with no step-up in basis for any of the assets and liabilities for tax purposes. The tax rate for the companies in effect for all periods is 40%. A preliminary purchase price allocation has been prepared by PB Inc. based on a third-party valuation firm and has been presented below. A bonus agreement has been entered into with J Inc. management requiring payment by PB Inc. of $1 million contingent upon the acquisition by PB Incorporated. Payment will be made in May of 2017 and will be deducted in the 2017 return by PB Inc. The separate financial statements of each of the companies are presented below in the purchase accounting and consolidating worksheet. The purchase accounting adjustments are presented in the Purchase Accounting Adjustment column of the worksheet. Deferred tax assets of J relate to net operating losses of $625,000 which upon acquisition are considered not more likely than not recoverable based on the combined filing positions of PB Inc. and J. Taxable temporary differences of $250,000 of J Incorporated will reverse in the future combined returns of PB and J.