On December $31,$ Pacifica, Incorporated, acquired $100$ percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included $56,480$ newly issued Pacifica common shares $($$$20$ market value, $$5$ par value$)$ and an agreement to pay an additional $$130,000$ cash if Seguros meets certain project completion goals by December $31$ of the following year. Pacifica estimates a $50$ percent probability that Seguros will be successful in meeting these goals and uses a $4$ percent discount rate to represent the time value of money.

Immediately prior to the acquisition, the following data for both firms were available:

Items Pacifica Seguros Book Values Seguros Fair Values

Revenues $ $(2,010,000)00$

Expenses $1,407,00000$

Net income $ $(603,000)00$

Retained earnings, $1/1$ $ $(954,000)00$

Net income $(603,000)00$

Dividends declared $124,00000$

Retained earnings, $12/31$ $ $(1,433,000)00$

Cash $ $129,000$ $ $135,000$ $ $135,000$

Receivables and inventory $293,00092,00081,000$

Property, plant, and equipment $2,090,000504,000698,500$

Trademarks $331,000209,000253,600$

Total assets $ $2,843,000$ $ $940,0000$

Liabilities $ $(535,000)(197,000)$ $ $(197,000)$

Common stock $(400,000)(200,000)0$

Additional paid$-$in capital $(475,000)(70,000)0$

Retained earnings $(1,433,000)(473,000)0$

Total liabilities and equities $ $(2,843,000)$ $ $(940,000)0$

In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $$131,000.$ Although not yet recorded on its books, Pacifica paid legal fees of $$17,700$ in connection with the acquisition and $$9,900$ in stock issue costs.

Required:

a$.$ Prepare Pacifica$$s journal entries to record the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs.

b$.$ and c$.$ Present a worksheet showing the postacquisition column of accounts for Pacifica and the consolidated balance sheet as of the acquisition date.