6 2 points eBook Print Problem 1-28 (Static) Journal Entries to Record a Business Combination LO 1-5 On January 1, 20X2, Prost Company acquired all of SKK Corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At that date, Prost shares were selling at $22 per share. Historical cost and fair value balance sheet data for SKK at the time of acquisition were as follows: 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 Historical Cost $ 28,000 Fair Value $ 28,000 122,000 470,000 94,000 600,000 (240,000) $ 482,000 $ 41,000 65,000 160,000 216,000 $ 620,000 $ 41,000 63,000 References Total Liabilities and Equities $ 482,000 Prost paid legal fees for the transfer of assets and liabilities of $14,000. Prost also paid audit fees of $21,000 and listing application fees of $7,000, both related to the issuance of new shares. Required: Prepare the journal entries made by Prost to record the business combination. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.