$5-4$ On July $31,$ Year $10.$ Pell Corporation issued $20\mathrm{.}000$ shares of its $$2$ par common stock $($current fair value $$10$ a share$)$ for all $5\mathrm{.}000$ shares of outstanding $$5$ par common stock of Swift Company, which is to remain a separate corporation. Out$-$of$-$pocket costs of the business combination, paid by Pell on July $31.$ Year $10,$ are shown below:

Finder's and legal fees related to business combination $..........$ $$20\mathrm{.}000$

Costs associated with SEC registration statement for Pell common stock $10,000$

Total out$-$of$-$pocket costs of business combination $............$ $$30\mathrm{.}000$

The constituent companies' balance sheets on July $31,$ Year $10,$ prior to the business combination. follow:

PELL CORPORATION AND SWIFT COMPANY

Separate Balance Sheets

July $31,$ Year $10$

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