Point Corporation acquires all the assets and assumes all the liabilities of Sharp Company in a statutory merger by issuing 10,000 shares of $10 par common stock to Sharp (market value $610,000).

Required: Prepare the journal entries that would appear on Point's books to record the aquisition of Sharp.

FIGURE 1-2 Sharp Company Balance Sheet Information, December 31, 20XO Assets, Liabilities & Equities Book Value Fair Value Cash & Receivables $ 45,000 $ 45,000 75,000 65,000 40,000 70,000 Inventory Land Buildings & Equipment Accumulated Depreciation 400,000 350,000 (150,000) Patent Total Assets 80,000 $620,000 110,000 Current Liabilities Common Stock ($5 par) Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $400,000 $100,000 100,000 50,000 150,000 $400,000 Fair Value of Net Assets $510,000