Kappa Corp. acquired all of the net assets of Lambda Corp. on January 15, 2005, in an acquisition reported as a merger. The fair values of Lambda Corp.’s identifiable net assets at the date of acquisition are as follows:

Tangible assets	$40,000,000
Intangible assets	$85,000,000
Liabilities	$60,000,000

Kappa pays $150 million in cash and issues 1,800,000 shares of stock to the former owners of Lambda. Kappa’s stock has a par value of $2/share. The market price of the shares at the date of acquisition, $55/share, is used to value the shares issued. Registration fees for the stock are $800,000, and legal and consulting fees connected with the acquisition are $1,000,000, both paid in cash.

Required: Record the acquisition on January 15, 2005.