Journal entries to record an acquisition (LO# 4)

Garran Corporation issued 480,000 shares of $10 par common stock with a fair value of $10,200,000 for all the voting common stock of Set Corporation. In addition, Garran incurred the following costs:

Legal fees to arrange the business combination $100,000

Cost of SEC registration, including accounting and legal fees 48,000

Cost of printing and issuing net stock certificates 12,000

Indirect costs of combining, including allocated overhead and executive salaries 80,000

Immediately before the acquisition in which Set Corporation was dissolved, Set's assets and equities were as follows (in thousands):

Book Value Fair Value:

Current assets $4,000 $4,400

Plant assets 6000 8,800

Liabilities 1,200 1,200

Common stock 8,000

Retained earnings 800

REQUIRED: Preparee all journal entries on Garran's books to record the acquisition.