n January 1, 20X2, Prost Company acquired all of SKK Corporations 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:

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. Required: Prepare the journal entries made by Prost to record the business combination