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Journal Entries to Record a Business Combination On January 1 , 2 0 X 2 , Prost Company acquired all of SKK Corporation's assets and

Journal Entries to Record a Business Combination
On January 1,20X2, Prost Company acquired all of SKK Corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At that date, Prost shares were selling at $22 per share. Historical cost and fair value balance sheet data for SKK at the time of acquisition were as follows:
\table[[Balance Sheet Item,Historical Cost,Fair Value],[Cash & Receivables,$ 28,000,$28,000],[Inventory,94,000,122,000],[Buildings & Equipment,600,000,470,000],[Less: Accumulated Depreciation,(240,000),],[Total Assets,$482.000,$620,000],[Accounts Payable,$ 41,000,$ 41,000],[Notes Payable,65,000,63,000],[Common Stock ($ 10 par value),160,000,],[Retained Earnings,216,000,],[Total Liabilities & Equities,$482,000,]]
Prost paid legal fees for the transfer of assets and liabilities of $14,000. Prost also paid audit fees of $21,000 and listing application fees of $7,000, both related to the issuance of new shares.
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Prepare the journal entries made by Prost to record the business combination.
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