The financial statements for Merkley Inc. and Keynes Corp., just

The financial statements for Merkley Inc. and Keynes Corp., just prior to their combination, for the year ending December 31, 2012, follow. Keynes’s buildings were undervalued on its financial records by $45,000., , Merkley Inc. Keynes Corp.,Revenues $1,100,000 $400,000,Expenses (980,000) (310,000),Net income $120,000 $90,000, ,Retained earnings, January 1, 2012 480,000 360,000,Net income (above) 120,000 90,000,Dividends paid (60,000) (45,000),Retained earnings, December 31, 2012 $540,000 $405,000, ,Cash $135,000 $95,000,Receivables and inventory 180,000 190,000,Buildings (net) 550,000 395,000,Equipment (net) 575,000 355,000,Total assets $1,440,000 $1,035,000, ,Liabilities $185,000 $195,000,Common stock 650,000 380,000,Additional paid-in capital 65,000 55,000,Retained earnings, December 31, 2012 (above) 540,000 405,000,Total liabilities and stockholders’ equity $1,440,000 $1,035,000,, ,On December 31, 2012, Merkley issued 45,000 new shares of its $10 par value stock in exchange for all the outstanding shares of Keynes. Merkley’s shares had a fair value on that date of $28 per share. Merkley paid $32,000 to an investment bank for assisting in the arrangements. Merkley also paid $22,000 in stock issuance costs to effect the acquisition of Keynes. Keynes will retain its incorporation.,,-1) Prepare the journal entry to record the issuance of common stock by Merkley.,-2) Prepare the journal entry to record the payment of combination costs.,-3) Determine consolidated net income for the year ended December 31, 2012.,-4) Determine consolidated additional paid-in capital at December 31, 2012. (Points : 25),