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Question 2 (50 points) On January 1, 2020, Pigeon Corporation acquired Snake Corporation's net assets...

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Question 2 (50 points) On January 1, 2020, Pigeon Corporation acquired Snake Corporation's net assets by paying 250,000 cash. Balance sheet data for the Pigeon & Snake and fair value information for Snake immediately before the business combination are given below: Pigeon Snake ASSETS Book Value Book Value Fair Value Cash 325,000 70,000 70,000 Notes receivable 135,000 55,000 55,000 Inventory 75,000 81,000 86,000 Plant, Property and Equipment 375,000 275,000 230,000 Less: Accumulated Depreciation -140,000 -85,000 Total Assets 770,000 396,000 436,000 LIABILITIES & STOCKHOLDERS' EQUITY Accounts Payable 155,000 82,000 85,000 Notes Payable 230,000 97,000 95,000 Bonds payable 100,000 35,000 37,000 Common Stock 25,000 40,000 Additional Paid-in Capital 120,000 55,000 Retained Earnings 140,000 87.000 Total Liabilities and Equities 770,000 396,000 Required: a. Prepare the journal entry to record the acquisition of Snake Corporation. b. What would the balance of inventory be in the balanced sheet of combined company immediately after the combination? Calculations Final Answer C. What would the balance of Common stock be in the balanced sheet of combined company immediately after the combination? Calculations Final

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