Edina Company acquired the assets (except cash) and assumed the liabilities of Burns Company on January 1, 2016, paying $2,600,000 cash. Immediately prior to the acquisition, Burns Company's balance sheet was as follows: BOOK VALUE FAIR VALUE Accounts receivable (net) $ 240,000 $ 220,000 Inventory 290,000 320,000 Land 960,000 1,508,000 Buildings (net) 1,020,000 1,392,000 Total $2,510,000 $3,440,000 Accounts payable $ 270,000 $ 270,000 Note payable 600,000 600,000 Common stock, $5 par 420,000 Other contributed capital 640,000 Retained earnings 580,000 Total $2,510,000 Edina Company agreed to pay Burns Company's former stockholders $200,000 cash in 2017 if post- combination earnings of the combined company reached $1,000,000 during 2016.Required:A. Prepare the journal entry necessary for Edina Company to record the acquisition on January 1, 2016. It is expected that the earnings target is likely to be met. B. Prepare the journal entry necessary for Edina Company in 2017 assuming the earnings contingency was not met.