Pintime Industries Incorporated entered into a business combination agreement with Sydrolized Chemical Corporation $($SCC$)$ to ensure 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 $180,100$ shares of its $$2$ par common stock in exchange for all of SCC$$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:

Book Values Fair Values

Assets

Cash $ $28,000$ $ $28,000$

Accounts Receivable $249,000243,900$

Less: Allowance for Bad Debts $(5,100)$

Inventory $365,000379,000$

Long$-$Term Investments $133,000158,000$

Land $44,00094,000$

Rolling Stock $120,00052,000$

Plant and Equipment $2,421,0002,486,000$

Less: Accumulated Depreciation $(607,000)$

Patents $114,000482,000$

Special Licenses $94,40098,100$

Total Assets $ $2,956,300$ $ $4,021,000$

Liabilities

Current Payables $ $138,100$ $ $138,100$

Mortgages Payable $508,000528,000$

Equipment Trust Notes $106,000101,000$

Debentures Payable $1,030,000980,000$

Less: Discount on Debentures $(41,000)$

Total Liabilities $ $1,741,100$ $ $1,747,100$

Stockholders$$ Equity

Common Stock $($$$6$ par$)583,000$

Additional Paid$-$In Capital from Common Stock $508,000$

Additional Paid$-$In Capital from Retirement of Preferred Stock $20,000$

Retained Earnings $120,200$

Less: Treasury Stock $(1,200$ shares$)(16,000)$

Total Liabilities and Equity $ $2,956,300$

Immediately prior to the combination, Pintime$$s common stock was selling for $$15$ per share. Pintime incurred direct costs of $$153,000$ in arranging the business combination and $$49,000$ of costs associated with registering aa$.$Prepare all journal entries that should have been entered on SCC$$s books to record the combination and the distribution of the stocRecord the sale of assets and liabilities.k received.nd issuing the common stock used in the combination.

Record the sale of assets and liabilities.

Record the retirement of Treasury Stock.

Record the retirement of SCC stock and distribution of Pintime Industries stock.