Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,400 shares of Pamrods $20 par value common stock. Balance sheet data for both companies just before the merger are given as follows:

	Pamrod Manufacturing								Stafford Industries
Balance Sheet Items	Book Value				Fair Value				Book Value				Fair Value
Assets
Cash	$	80,000			$	80,000			$	25,000			$	25,000
Accounts Receivable		117,000				117,000				53,000				53,000
Inventory		200,000				395,000				112,000				154,000
Land		61,000				100,000				51,000				24,000
Buildings and Equipment		617,000				549,000				409,000				348,000
Less: Accumulated Depreciation		(237,000	)							(144,000	)
Total Assets	$	838,000			$	1,241,000			$	506,000			$	604,000
Liabilities and Equities
Accounts Payable	$	60,000			$	60,000			$	8,000			$	8,000
Bonds Payable		315,000				325,000				152,000				144,000
Common Stock:
$20 par value		188,000
$10 par value										95,000
Additional Paid-In Capital		37,000								16,000
Retained Earnings		238,000								235,000
Total Liabilities and Equities	$	838,000							$	506,000

Pamrod shares were selling for $140 on the date of acquisition.

Required:

a. Prepare a Journal entry to record the acquisition in Pamrods books.

b. Prepare a balance sheet for the combined enterprise immediately following the business combination.