Plastic Corporation is contemplating a business combination with Steel Corporation at December 31, 2011. Steel's condensed balance sheet on that date appears below:

Assets Book Value Fair Value Cash and receivables $56,000 $56,000 Inventory 56,000 72,000 Equity method investments 28,800 32,000 Land 12,800 17,600 Buildings and equipment 11,200 22,400 Patents 8,000 16,000 Total assets $172,800 Liabilities and Stockholders' Equity Liabilities $35,200 $35,200 Common stock 80,000 -- Retained earnings 57,600 -- Total liabilities and equity $172,800

Prepare the journal entry to record the business combination of Plastic and Steel for each of the following purchase prices and combination methods (data provided below are in millions).

(a) Plastic merges with Steel by acquiring all of Steel's stock for $200,000 cash, in a merger. Other direct cash acquisition costs are $40,000.

(b) Plastic merges with Steel by acquiring all of Steel's stock for $160,000 cash, in a merger. Other direct cash acquisition costs are $16,000.

(c) Plastic merges with Steel by acquiring all of Steel's stock for $216,000 cash, in a stock acquisition. Other direct cash acquisition costs are $24,000.