Anchor Corporation paid cash of $178,000 to acquire Zink Companys net assets on February 1, 20X3. The

Anchor Corporation paid cash of $178,000 to acquire Zink Company’s net assets on February 1, 20X3. The balance sheet data for the two companies and fair value information for Zink immediately before the business combination were:

Required
a. Give the journal entry recorded by Anchor Corporation when it acquired Zink’s net assets.
b. Prepare a balance sheet for Anchor immediately following the acquisition.
c. Give the journal entry to be recorded by Anchor if it acquires all of Zink’s common stock (instead of Zink’s net assets) for$178,000.

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Anchor Corporation Zink Company Balance Sheet Item 3 Buildings & Equipment Less: Accumulated Depreciation $ 820,000 $235,000 Accounts Payable $10 par value Additional Paid-In Capital Total Liabilities & Equities