Erin acquires 100 percent of the outstanding voting shares of Mikell Company on January 1, 2020. To obtain these shares, Erin pays $500,000 and issues 10,000 shares of $20 par value common stock on this date. Erin's stock had a fair market value of $30 per share on that date. Erin also pays $15,000 to a local investment firm for arranging the acquisition. An additional $8,000 was paid by Erin in stock issuance costs. The book values for both Erin and Mikell as of January 1, 2020 follow. The fair market value of each of Mikell's accounts is also included. In addition, Mikell holds a fully amortized trademark that retains a $35,000 value. Erin Mikell Company Book Market Value Value Cash Receivables Inventory Land Buildings (net) Equipment Accounts payable Long-term liabilities Common stock Retained earnings $900,000 480,000 660,000 300,000 1,200,000 360,000 (480,000) (1,140,000) (1,200,000) (1,080,000) $80,000 180,000 260,000 120,000 220,000 100,000 (60,000) (340,000) (80,000) (480,000) $80,000 160,000 300,000 130,000 280,000 75,000 (60,000) (300,000) Required: Assuming that this combination is a statutory merger (Mikell Company is dissolved), prepare any journal entries necessary to record the acquisition on Erin's books