Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,000 shares of Pamrod's $20 par value common stock. Balance sheet data for both companies just before the merger are given as follows: Balance Sheet Items Assets Cash Accounts Receivable Pamrod Manufacturing Stafford Industries Book Value Fair Value Book Value Fair Value $ 70,000 100,000 $ 30,000 60,000 100,000 $ 70,000 100,000 200,000 50,000 Inventory Land Buildings and Equipment Less: Accumulated Depreciation Total Assets Liabilities and Equities Accounts Payable Bonds Payable Common Stock: $20 par value $5 par value Additional Paid-In Capital Retained Earnings $ 770,000 375,000 80,000 540,000 40,000 400,000 (150,000) $ 30,000 60,000 160,000 30,000 350,000 $630,000 600,000 (250,000) } $1,165,000 $ 480,000 50,000 300,000 50,000 310,000 $ 10,000 150,000 $ 10,000 145,000 200,000 100,000 40,000 180,000 Total Liabilities and Equities $ 770,000 20,000 200,000 $ 480,000 Pamrod shares were selling for $150 on the date of acquisition. Required: a. Prepare a Journal entry to record the acquisition in Pamrod's books. b. Prepare a balance sheet for the combined enterprise immediately following the business combination.