E1-6 [Appendix] Journal entries to record business combinations Pop Company issued 120,000 shares of $10 par common stock with a fair value of $2,550,000 for all the voting com- mon stock of Son Company. In addition, Pop incurred the following additional costs: Legal fees to arrange the business combination Cost of SEC registration, including accounting and legal fees Cost of printing and issuing new stock certificates Indirect costs of combining including allocated overhead and executive salaries $25,000 12,000 3,000 20,000 Immediately before the business combination in which Son Company was dissolved, Son's assets and equities were as follows (in thousands): Book Value $1,000 1,500 Current assets Plant assets Liabilities Common stock Retained earnings Fair Value $1,100 2,200 300 300 2,000 200 REQUIRED: Assume that the business combination is a pooling of interests. Prepare all journal entries on Pop's books to record the business combination