Outside consultants are paid $$300$ in cash, and registration fees to issue PR$\text{'}$s new stock are $$500.$ The question below relates to the entry or entries made to record the business combination.

Three months after the acquisition, a fire damages SX$\text{'}$s equipment, reducing its fair value from $$9,000$ to $$4,000.$ How is this event reported? Ignore depreciation.