EXERCISE 32 Stock Purchase Entries LO 7 LO 8 On January 1, 2019, Polo Company purchased 100% of the common stock of Save Company by issuing 40,000 shares of its (Polo's) $10 par value common stock with a market price of $17.50 per share. Polo incurred cash expenses of $20,000 for registering and issuing the common stock. The stockholders' equity section of the two companies' balance sheets on December 31, 2018, were: Polo Save Common stock, $10 par value $350,000 $320,000 Other contributed capital 590,000 175,000 Retained earnings 380,000 205,000 Required: Prepare the journal entry on the books of Polo Company to record the purchase of the common stock of Save Company and related expenses. Prepare the elimination entry required for the preparation of a consolidated balance sheet workpaper on the date of acquisition