On February 28, 2018, ABC International Company acquired the net assets of Red Sea Company by paying $100,000 cash and issued 100,000 shares at $2 par common stock (current fair value $5 a share). The balance sheet of Red Sea Company as February 28, 2018, with related current fair values, was as follows:

RED SEA COMPANY
Balance Sheet (prior to business combination)
February 28, 2018
	Book Values		Fair Values
Assets
Cash	$40,000		$40,000
Inventory	220,000		210,000
Plant assets (net)	300,000		330,000
Other assets	180,000		200,000
Total assets	$750,000
Liabilities and Stockholders Equity
Current liabilities	$110,000		$90,000
Long-term debt	250,000		260,000
Common stock	220,000
Retained earnings	170,000
Total liabilities and stockholders equity	$750,000

Required:

Prepare journal entries for ABC Company on February 28, 2018, to record the business combination with Red Sea Company. (Omit explanations)