Pepper Company acquired the assets (with the exception of cash) and assumed the liabilities of Salt Company on January 2, 2020. As compensation, Pepper gave 30,000 shares of its common stock, 15,000 shares of its Preferred Stock, and cash of $50,000 to the Salt stockholders. On the acquisition date, Pepper Company stock had the following characteristics. STOCK Common $10 $25 Preferred $100 $100 Immediately prior to the acquisition, Salt Corporation's balance sheet reflected the following book and fair values. Salt Corporation Balance Sheet 2-Jan-20 Book Value Fair Value Cash Accounts Receivable(net of $11,000 allowance) Inventory Land Buildings and equipment, net Total Assets $165,000 220,000 275,000 396,000 1,144,000 $2,200,000 $165,000 198,000 330,000 550,000 1,144,000 $2,387,000 $275,000 495,000 Current Liabilities Bonds Payable, 10% Common Stock, $5 par value Other Contributed Capital Retained Earnings Total Liabilities and Stockholders' Equity $275,000 450,000 770,000 396,000 309,000 $2,200,000 Required: Prepare the journal entry on the books of Pepper Inc. to record the acquisition of the assets and assumption of liabilities of Salt Corporation