Journal entries to record a purchase with direct costs and fair value/book value differences On January 1, Danders Corporation pays $200,000 cash and also issues 18,000 shares of $10 par common stock with a market value of $330,000 for all the outstanding common shares of Harrison Corporation. In addition, Danders pays $30,000 for registering and issuing the 18,000 shares and $70,000 for the other direct costs of the business combina¬ tion, in which Harrison Corporation is dissolved. Summary balance sheet information for the companies immediately before the merger is as follows (in thousands):

Danders Harrison Harrison Book Value Book Value Fair Value Cash

$350

$ 40

$ 40 Inventories 120 80 100 Other current assets 30 20 20 Plant assets—net 260 180 280 Total assets

$760

$320

$440 Current liabilities

$160

$ 30

$ 30 Other liabilities 80 50 40 Common stock, $ 10 par 420 200 Retained earnings 100 40 Total liabilities and owners’ equity

$760

$320 REQUIRED: Prepare all journal entries on Danders Coiporation’s books to account for the business combination.