E1-22 Recording a Business Combination LO 1-5 The following financial statement information was prepared for Plue Corporation and Sparse Company at December 31, 20X2: 41300 Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Goodwill Total Assets Accounts Payable Bonds Payable Balance Sheets December 31, 20X2 Plue Corporation $ 140,000 170,000 Sparse Company $ 70,000 110,000 250,000 180,000 80.000 100.000 $680,000 I $450,000 (320,000) 360,000 (230,000) 220,000 70,000 20,000 $1.070.000 $ 70,000 320,000 $700.000 $195,000 100.000 10,000 Bond Premium Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities 120,000 170,000 390.000 $1,070,000 150.000 60,000 185.000 $700,000 page 36 Plue and Sparse agreed to combine as of January 1, 20X3. To effect the merger, Plue paid finder's fees of $30,000 and legal fees of $24,000. Plue also paid $15,000 of andit fees related to the issuance of stock, stock registration fees of $8,000, and stock listing application fees of $6,000. At January 1, 20X3, book values of Spare Company's assets and liabilities approximated market value except for inventory with a market value of $200,000, buildings and equipment with a market value of $350,000, and bonds payable with a market value of $105,000. All assets and liabilities were immediately recorded on Pluc's books. Required Give all joumal entries that Plue recorded assuming Plue issued 40,000 shares of $8 par value common stock to acquire all of Spane's assets and liabilities in a business combination. Plue common stock was trading at $14 per share on January 1, 20X3,