Question 1: (7.5 points): A1, A3 Read the following case and answer the following questions as an accountant for the partnership: Lulu Company (Merchandising company) decided to purchase 100% of Raya company (Real estate company) at the beginning of 2019, both companies are agreed on creating a new company called LR company for real estate and general trading furthermore they agreed on that using the FMV for any exchanging transactions. Questions: 1- What is the Acquisition Method of Accounting used for the Business Combinations? (2.5 Points) 2- What is the method of the business combinations used? Why? (2.5 Points) 3. Which type of Business Combinations followed in the above case? Why? (2.5 Points) Question 2: (7.5 points): B1, C1, C3 Galaf Corporation acquired all the net assets of Jalahma Corporation directly from the shareholders by issuing 20,000 shares of its $10 par common stock (current fair value $20 a share). Galaf paid legal fees of $60,000 in connection with the combination The condensed balance sheet of Jalahma prior to the business combination, with related current fair value data is presented below: Jalahma Corporation (Combine) Balance Sheet (prior to business combination) December 31, 2020 Carrying Current Fair Amounts Values Assets Current assets $ 200,000 $ 190,000 Investment in securities 100,000 90,000 Plant assets (net) 520,000 800,000 Intangible assets (net) 20,000 50,000 Total Assets $ $40.000 $ 1.130,000 Liabilities and Stockholder's Equity $ 400.000 40,000 $ 440 000 Current liabilities Long-term debt Total liabilities Common stock $10 par Total stockholders' equity Total liabilities and stockholders equity $ 300,000 60.000 $360,000 $ 280,000 $ 200.000 $ 840.000 Instruction: 1- Calculate the good well. (2.5 Points), 2. Prepare journal entries on December 31, 2020, for Galaf Corporation to record the business combination with Jalahma Company. Disregard income taxes. (6 Points)