P1-29 Recording Business Combinations Flint Corporation exchanged shares of its $2 par common stock for all of Mark Company's assets and liabilities in a planned merger. Immediately prior to the combination, Mark's assets and liabilities were as follows: Immediately prior to the combination, Flint reported $250,000 additional paid-in capital and $1,350,000 retained earnings. The fair values of Mark's assets and liabilities were equal to their book values on the date of combination except that Mark's buildings were worth $1,500,000 and its equipment was worth $300,000. Costs associated with planning and completing the business combination totaled $38,000, and stock issue costs totaled $22,000. The market value of Flint's stock at the date of combination was $4 per share. Required Prepare the journal entries that would appear on Flint's books to record the combination if Flint issued 450,000 shares. Balance Sheet Item Historical Cost Fair Value Cash & Receivables $ 28,000 $ 28,000 Inventory 94,000 122,000 Buildings & Equipment 600,000 470,000 Less: Accumulated Depreciation (240,000) Total Assets $ 482,000 $620,000 Accounts Payable $ 41,000 $ 41,000