Anchor Corporation paid cash of $178,000 to acquire Zink Company’s net assets on February 1, 20X3. The balance sheet data for the two companies and fair value information for Zink immediately before the business combination were:

	Anchor Corporation	Zink Company
Balance Sheet Item	Book Value	Book Value	Fair Value
Cash	$ 240,000	$ 20,000	$ 20,000
Accounts Receivable	140,000	35,000	35,000
Inventory	170,000	30,000	50,000
Patents	80,000	40,000	60,000
Buildings & Equipment	380,000	310,000	150,000
Less: Accumulated Depreciation	(190,000)	(200,000)
Total Assets	$ 820,000	$ 235,000	$315,000
Accounts Payable	$ 85,000	$ 55,000	$ 55,000
Notes Payable	150,000	120,000	120,000
Common Stock:
$10 par value	200,000
$6 par value		18,000
Additional Paid-In Capital	160,000	10,000
Retained Earnings	225,000	32,000
Total Liabilities & Equities	$ 820,000	$ 235,000

Required

a. Give the journal entry recorded by Anchor Corporation when it acquired Zink’s net assets. 

b. Prepare a balance sheet for Anchor immediately following the acquisition.

c. Give the journal entry to be recorded by Anchor if it acquires all of Zink’s common stock (instead of Zink’s net assets) for $178,000.