On January 1, 20X3, PURE Products Corporation issued 12,000 shares of its $10 par value stock to acquire the net assets of Light Steel Company. Underlying book value and fair value informa- tion for the balance sheet items of Light Steel at the time of acquisition follow:

Balance Sheet Item Book Value Fair Value

Cash $ 60,000 $ 60,000

Accounts Receivable 100,000 100,000

Inventory (LIFO basis) 60,000 60,000

Land 50,000 70,000

Buildings and Equipment 400,000 350,000

Less: Accumulated Depreciation (150,000) -

Total Assets $520,000 $695,000

Accounts Payable $ 10,000 $ 10,000

Bonds Payable 200,000 180,000

Common Stock ($5 par value) 150,000

Additional Paid-In Capital 70,000

Retained Earnings 90,000

Total Liabilities and Equities 520,000

Light Steel shares were selling at $18 and PURE Products shares were selling at $50 just before the merger announcement. Additional cash payments made by PURE Products in completing the acquisition were

Finders fee paid to firm that located Light Steel $10,000

Audit fee for stock issued by PURE Products 3,000

Stock registration fee for new shares of PURE Products 5,000

Legal fees paid to assist in transfer of net assets 9,000

Cost of SEC registration of PURE Products shares 1,000

Prepare all journal entries to record the business combination on PURE Products books