Problem $2\mathrm{.}1$North Inc. commenced operations on January $1,2024.$ At that date, cash on hand was $$2,000,000.$ Issued commons shares were $$2,000,000.$ On the same day, the company acquired all the shares of South Company for $$1,000,000$ cash. The following assets were acquired, at fair value:Land$$500,000$Building$$310,000$Computer software$$45,000$The building will be depreciated using the straight$-$line method. It has an estimated useful life of $20$ years and a residual value of $$10,000.$The computer software has an estimated useful life of five years and a residual value of $$5,000.$ It is amortized on the straight$-$line basis. Amortization expense needs to be claimed on the software for $2024.$ The computer software was sold on December $31,2024,$ for $$60,000$ cash.During $2024,$ North Inc. had sales of $$600,000.$ $$345,000$ of these sales has been collected in cash by year$-$end. $$5,000$ of accounts receivable were written off as uncollectible during the year. The company estimates allowance for doubtful accounts at $10\%$ of ending accounts receivable.Required: $1.$Complete the transactions worksheet on the following page for the year ended December $31,2024.$ Assume there are no other transactions$\mathrm{.}2.$Calculate the carrying amounts of accounts receivable, goodwill, and PPE reported on the statement of financial position at December $31,2024\mathrm{.}3.$What are the effects of the transactions on the statement of cash flows? on the income statement? on the statement of changes in equity?Hint: Review P$2-3,$ P$2-24$ and P$2-25$ and solutions in the Introduction to Financial Accounting material.Check figures: Bad debt expense is $$25,000$; gain on disposal of computer software is $$23,000$; ending cash balance is $$1,405,000$; ending computer software balance is zero.