Anchor Corporation paid cash of \(\$ 178.000\) to acquire the net assets of Zink Company on February 1, 20X3. The balance sheet data for the two companies and fair value information for Zink Company immediately before the business combination were:

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a. Give the journal entry to be recorded by Anchor Corporation at the time it purchases the net assets of Zink Company.

b. Prepare a balance sheet for Anchor Corporation immediately following the acquisition.

c. Give the journal entry to be recorded by Anchor Corporation if it purchases all of Zink's common stock for \(\$ 178,000\).

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Balance Sheet Item Cash Anchor Corporation Book Value $240.000 Book Value $ 20.000 Zink Company Fair Value $ 20.000 Accounts Receivable 140.000 35,000 35.000 Inventory 170.000 30.000 50.000 Patents 80.000 40.000 60.000 Buildings and Equipment 380,000 310.000 150.000 Less: Accumulated Depreciation (190.000) (200.000) Total Assets $820,000 $235.000 $315.000 Accounts Payable Notes Payable Common Stock: $ 85,000 150.000 $ 55,000 120.000 $ 55,000 120,000 $10 par value 200.000 $6 par value 18,000 Additional Paid-In Capital 160,000 10,000 Retained Earnings 225,000 32,000 Total Liabilities and Equities $820,000 $235,000