On January 1, 20X8, Alaska Corporation acquired Mercantile Corporation's net assets by paying $160,000 cash. Balance sheet data for the two companies and fair value information for Mercantile Corporation immediately before the business combination are given below:

	Alaska				Mercantile
	Book Value				Book Value				Fair Value
Cash		$	200,000			$	30,000			$	30,000
Accounts Receivable			40,000				22,000				22,000
Inventory			120,000				25,000				36,000
Patents			50,000				20,000				40,000
Buildings and Equipment			330,000				250,000				150,000
Less: Accumulated Depreciation			140,000				150,000
Total Assets		$	600,000			$	197,000			$	278,000
Accounts Payable		$	85,000			$	55,000			$	55,000
Notes Payable			100,000				80,000				80,000
Common Stock:
$5 par value			120,000
$2 par value							20,000
Additional Paid-In Capital			140,000				25,000
Retained Earnings			155,000				17,000
Total Liabilities and Equities		$	600,000			$	197,000

Required:

Prepare the journal entry to record the acquisition of Mercantile Corporation.