On January 2, 2019, Birch Corporation issued 35,000 of its own $10 par common stock for all of the outstanding stock of Tree Corporation in an acquisition. Tree is dissolved. Additionally, Birch pays $50,000 for registration fees associated with the stock issuance, and $75,000 for other expenses related to the acquisition. The market price of Birch's stock on January 2, 2019 is $50 per share. Relevant balance sheet information for Birch and Tree Corporations on December 31, 2018 just before the combination is as follows (in thousands):

Birch Historical CostTree Historical CostTree Fair Value

Cash2503035

Inventories30070140

Other current assets440100120

Land13050250

Plant and equipment - net1,470350800

Total assets2,5906001,345

Liabilities5005060

Capital Stock, $10 par1,200300

Additional paid-in-capital350150

Retained earnings540100

Total liabilities and owner's equity2,590600

Questions:

1. Prepare the preliminary calculations for the acuqisition of Tree.

2. Prepare the journal entries to record the acquisition of Tree (show all of your work and place your calculations in the cells.).

3. Prepare balance sheet for Birch Corporation immediately after the acquisition.