Pintime Industries Incorporated entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ens an uninterrupted supply of key raw materials and to realize certain economies from combining the operating processes and the marketing efforts of the two companies. Under the terms of the agreement, Pintime issued 180,000 shares of its $1 par common sto in exchange for all of SCC's assets and liabilities. The Pintime shares then were distributed to SCC's shareholders, and SCC was liquidated. Immediately prior to the combination, SCC's balance sheet appeared as follows, with fair values also indicated: Assets Cash Accounts Receivable Less: Allowance for Bad Debts Inventory Long-Term Investments Land Rolling Stock Plant and Equipment Less: Accumulated Depreciation Patents Special Licenses Total Assets Liabilities Current Payables Mortgages Payable Equipment Trust Notes Debentures Payable Less: Discount on Debentures Total Liabilities Stockholders' Equity Common Stock ($5 par) Book Values Fair Values $ 28,000 258,000 $ 28,000 251,500 (6,500) 381,000 395,000 150,000 175,000 55,000 100,000 130,000 63,000 2,425,000 2,500,000 (614,000) 125,000 95,800 $ 3,027,300 $ 137,200 500,000 100,000 1,000,000 (40,000) $ 1,697,200 600,000 500,000 22,000 500,000 100,000 $ 4,112,500 $ 137,200 520,000 95,000 950,000 $ 1,702,200 Additional Paid-In Capital from Common Stock Additional Paid-In Capital from Retirement of Preferred Stock Retained Earnings Less: Treasury Stock (1,500 shares) Total Liabilities and Equity 220,100 (12,000) $ 3,027,300 Immediately prior to the combination, Pintime's common stock was selling for $14 per share. Pintime incurred direct costs of $135,00 in arranging the business combination and $42,000 of costs associated with registering and issuing the common stock used in the combination. Required: a. Prepare all journal entries that Pintime should have entered on its books to record the business combination. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.