Power Company purchased Sark Corporation's net assets on January 3, 20X2, for $625,000 cash. In addition, Power incurred $5,000 of direct costs in consummating the combination. At the time of acquisition, Sark reported the following historical cost and current market data: Balance Sheet Item Book Value Fair Value Assets Cash & Receivables $ 50,000 $ 50,000 Inventory 100,000 150,000 Buildings & Equipment (net) 200,000 300,000 Patent 200,000 Total Assets $ 350,000 $ 700,000 Liabilities & Equities Accounts Payable $ 30,000 $ 30,000 Common Stock 100,000 Additional Paid-In Capital 80,000 Retained Earnings 140,000 Total Liabilities & Equities $ 350,000 Required: Prepare the journal entry or entries with which Power recorded its acquisition of Sark's net assets.