Plint Corporation exchanged shares of its $2 par common stock for all of Sark Company’s assets and liabilities in a planned merger. Immediately prior to the combination, Sark’s assets and liabilities were as follows:

Immediately prior to the combination, Plint reported $250,000 additional paid-in capital and $1,350,000 retained earnings. The fair values of Sark’s assets and liabilities were equal to their book values on the date of combination except that Sark’s buildings were worth $1,500,000 and its equipment was worth $300,000. Costs associated with planning and completing the business combination totaled $38,000, and stock issue costs totaled $22,000. The market value of Plint’s stock at the date of combination was $4 per share.

Required

Prepare the journal entries that would appear on Plint’s books to record the combination if Plint issued 450,000 shares

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Assets Cash & Equivalents Accounts Receivable Inventory Land Buildings Equipment Accumulated Depreciation Total Assets Liabilities & Equities Accounts Payable Short-Term Notes Payable Bonds Payable Common Stock ($10 par) Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $ 41,000 73,000 144,000 200,000 1,520,000 638,000 (431,000) $2,185,000 $ 35,000 50,000 500,000 1,000,000 325,000 275,000 $2,185,000