1) On January 1, 20X8, Nebraska Corporation acquired Mercantile Corporation's net assets by paying $190,000 cash. Balance sheet data for the two companies and fair value information for Mercantile Corporation immediately before the business combination are given below:

	Nebraska				Mercantile
	Book Value				Book Value					Fair Value
Cash		$	200,000				$	30,000				$	30,000
Accounts Receivable			40,000					22,000					22,000
Inventory			120,000					25,000					31,000
Patents			50,000					20,000					45,000
Buildings and Equipment			330,000					250,000					170,000
Less: Accumulated Depreciation			140,000					150,000
Total Assets		$	600,000				$	197,000				$	298,000
Accounts Payable		$	85,000				$	55,000				$	55,000
Notes Payable			100,000					80,000					80,000
Common Stock:
$5 par value			120,000
$2 par value								20,000
Additional Paid-In Capital			140,000					25,000
Retained Earnings			155,000					17,000
Total Liabilities and Equities		$	600,000				$	197,000

Required:

1. Prepare the journal entry to record the acquisition of Mercantile Corporation.
2. Prepare the journal entry to record the acquisition of Mercantile corporation if the purchase price was $135,000.