On January 1, 20X2, Frost Company acquired all of the assets and liabilities of TKK Corporation by issuing 24,000 shares of its \(\$ 4\) par value common stock. At that date, Frost Company shares were selling at \(\$ 22\) per share. Historical cost and fair value balance sheet data for TKK Corporation at the time of acquisition were as follows:

Frost Company paid legal fees for the transfer of assets and liabilties of \(\$ 14,000\), audit fees of \(\$ 21.900\), and listing application fees for the new shares of \(\$ 7,000\).
\section*{Required}
Prepare the journal entries made by Frost to record the business combination assuming purchase treatment was used.

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Balance Sheet Item Cash and Receivables Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Notes Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Equities Historical Cost Fair Value $ 28,000 $ 28,000 94,000 600,000 (240,000) $482,000 $ 41,000 122.000 470,000 65,000 160,000 216,000 $620,000 $ 41,000 63,000 $482,000