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At January 1, Danders Corporation pays $200,000 cash and also issue 18,000 shares of $10 par common stock with a market value $330,000 for all

At January 1, Danders Corporation pays $200,000 cash and also issue 18,000 shares of $10 par common stock with a market value $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 combinationSummarized balance sheet information for the companies immediately before the merger is as follows (in thousands) :

DandersHarrisonHarrison

Book ValueBook ValueFair Value

Cash$ 350,000$40,000$ 40,000

Inventories120,00080,000100,000

Other current assets30,00020,00020,000

Plant assets-net260,000180,000280,000

Total Assets$,760,000$ 320,000$ 440,000

Current liabilities$160,000$30,000$ 30,000

Other liabilities80,00050,00040,000

Common stock, $ 10 par420,000200,000

Retained Earnings100,00040,000

Total Liabi & Equities$760,000$ 320,000

Required:

1)Prepare Dander's general journal entry for the acquisition of Harrison, assuming that

Harrison dissolves as a separate legal entity.(6pts)

2)Prepare Dander's general journal entry for the acquisition of Harrison assuming that

Harrison continues as a separate legal entity(6pts

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