Post$-$Combination Balance Sheet

Presented below are the balance sheets of Allen Corporation and Benson Corporation, immediately prior to a business combination. The fair values of Benson$$s reported net assets equal their book values, and previously unreported identifiable intangible assets have a fair value of $$75,000.$

Allen Corp. Benson Corp.

Cash $$1,000,000$ $ $50,000$

Other current assets $600,000150,000$

Property, plant and equipment $1,200,000300,000$

Total assets $$2,800,000$ $$500,000$

Current liabilities $$300,000$ $$100,000$

Long$-$term liabilities $600,000250,000$

Common stock $1,100,000100,000$

APIC $00$

Retained earnings $800,00050,000$

Total liabilities and equity $$2,800,000$ $$500,000$

Required

Prepare the acquisition entry and the balance sheet of Allen Corporation after the following business combination:

$(1)$ Allen acquires Benson for $$400,000$ cash.

Not all drop$-$down answers may be required for the journal entry.

Prepare the acquisition entry and the balance sheet of Allen Corporation after the following business combination:

$(2)$ Allen issues stock with a fair value of $$800,000$ to acquire Benson.

Not all drop$-$down answers may be required for the journal entry. If an account is not required, select $"$N$/$A$"$ as your answer. $($cash$,$ other current assets, PPE, Investment in Benson, Identifiable itangibles$,$ goodwill, common stock, long term liabilties, add paid in capital, retianed earnings$).$