Eagle Company purchased the net assets of Lark Corporation on January 3, 20X2, for \(\$ 565,000\) cash. In addition, \(\$ 5,000\) of direct costs were incurred in consummating the combination. At the time of acquisition Lark Corporation reported the following historical cost and current market data:

\section*{Required}
Give the journal entry or entries recorded by Eagle Company to record its purchase of the net assets of Lark Corporation.

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Balance Sheet Item Book Value Fair Value Cash and Receivables. Inventory Buildings and Equipment (net) Patent Total Assets Accounts Payable Common Stock Additional Paid-In Capital Retained Earnings $ 50,000 100.000 200,000 $ 50,000 150,000 300.000 200.000 $350,000 $700.000 $ 30,000 $ 30,000 100,000 80,000 140,000 Total Liabilities and Equities $350,000