On 12/31, Choco acquired all assets and liabilities of Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share and this combination is a statutory merger (Cake was dissolved).  Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding   Choco Book Values Cake Book Values Cake Fair Values   Cash and Receivable 350,000 180,000 170,000   Inventories 250,000 100,000 150,000   Land 700,000 120,000 240,000   Building and equipment 600,000 600,000 900,000   Patented technology 100,000 0 60,000   Accounts payable 300,000 120,000 150,000   Long-term debt 0 400,000 350,000   Common stock 750,000 300,000     Additional paid in capital 500,000 60,000     Retained earnings 12/31 450,000 120,000     Revenues 350,000 160,000     Expenses 310,000 130,000      Q4. Prepare fair value allocation and goodwill schedule at the date of the acquisition.                 Q5. Prepare journal entry for acquisition in Choco’s book.                                                               Q6. Choco paid $14,000 in cash for legal fee.  What is the journal entry?