On January 1, 2015, Pruitt Company issued 27,900 shares of its common stock in exchange for 85% of the outstanding common stock of Shah Company. Pruitt's common stock had a fair value of $27 per share at that time (par value of $2 per share). Pruitt Company uses the cost method to account for its investment in Shah Company and files a consolidated income tax return. A schedule of the Shah Company assets acquired and liabilities assumed at book values (which are equal to their tax bases) and fair values follows. Book Value/ Item Tax Basis Fair Value Excess Receivables (net) $134,500 $134,500 $ -0- Inventory 163,400 192,000 28,600 Land 84,400 118,400 34,000 Plant assets (net) 484,500 578,900 94,400 Patents 94,900 188,900 94,000 Total $961,700 $1,212,700 $251,000 Current liabilities $81,900 $81,900 $-0- Bonds payable 280,900 346,900 66,000 Common stock 123,900 Other contributed capital 154,800 Retained earnings 320,200 Total $961,700 Additional Information: 1. Pruitt's income tax rate is 40%. 2. Shah's beginning inventory was all sold during 2015. 3. Useful lives for depreciation and amortization purposes are: Plant assets 10 years Patents 8 years Bond premium 10 years . Pruitt uses the straight-line method for all depreciation and amortization purposes.Prepare the stock acquisition entry on Pruitt Company's books. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit