Bower Company purchased Lark Corporations net assets on January 3, 20X2, for $632,000 cash. In addition, Bower incurred $9,000 of direct costs in consummating the combination. At the time of acquisition, Lark reported the following historical cost and current market data:

Balance Sheet Item	Book Value			Fair Value
Assets
Cash & Receivables	$	57,000		$	57,000
Inventory		114,000			165,000
Buildings & Equipment (net)		207,000			307,000
Patent					203,000
Total Assets	$	378,000		$	732,000
Liabilities & Equities
Accounts Payable	$	20,000		$	20,000
Common Stock		98,000
Additional Paid-In Capital		66,000
Retained Earnings		194,000
Total Liabilities & Equities	$	378,000

Required:

Prepare the journal entry or entries with which Bower recorded its acquisition of Larks net assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the payment of merger costs.
• Record the acquisition of Lark Corporation net asets.