On January 1, 20X2, Prost Company acquired all of SKK Corporations assets and liabilities by issuing 24,100 shares of its $6 par value common stock. At that date, Prost shares were selling at $24 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 $ 24,000 $ 24,000 Inventory 106,000 111,000 Buildings & Equipment 605,000 450,000 Less: Accumulated Depreciation (231,000 ) Total Assets $ 504,000 $ 585,000 Accounts Payable $ 49,000 $ 49,000 Notes Payable 74,000 72,000 Common Stock ($10 par value) 177,000 Retained Earnings 204,000 Total Liabilities & Equities $ 504,000 Prost paid legal fees for the transfer of assets and liabilities of $22,000. Prost also paid audit fees of $26,000 and listing application fees of $15,000, both related to the issuance of new shares. Required: Prepare the journal entries made by Prost to record the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the payment of legal fees.

• B

  Record the costs of issuing stock.

• C

  Record the purchase of SKK Corporation.