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Power Company purchased Sark Corporation's net assets on January 3, 20X2, for $625,000 cash. In addition, Power incurred 55.0 of direct costs in consummating the

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Power Company purchased Sark Corporation's net assets on January 3, 20X2, for $625,000 cash. In addition, Power incurred 55.0 of direct costs in consummating the combination. At the time of acquisition, Sark reported the foliowing historical cost and current market data Book Value 3 Se, een 100,00 200, Balance Sheet It Assets Cash Receivables Inventory Buildings Equipment (net) Patent Total Assets Liabilities & Equities Accounts Payable Common Stock Additional Paidin capital Retired Earnings Total litis Equities Faire $ 5, 150,00 3, 2000 52, $350,000 $ 30,00 538 30. 80,000 $150,80 Required: Prepare the journal entry or entries with which Power recorded is acquistion of Sorks net assets (if nie entry is required for a transaction event select "No Journal entry required in the first account field.) Viewracacional Journal entry worksheet Record the payment of merger costs. Event 1 Debt Credit General Journal Merger expense Cash and receivables Inventory Recordy Carey Views 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 Serk reported the following historical cost and current market data Book Valier Valve 550.000 100.00 200.00 Balance Sheet Item Assets Cash Receivables Inventory Building Equipment (net) Patent Total Assets Liabilities & Equities Accounts Payable Como Stock Additional Paiden Capital Retained Cars Total Liabilities Equities 3.50 15, 30000 200.000 $1,000 3350,00 330, 30,00 0.600 0.00 10 $350,00 Required: Prepare the journal entry or entries with which Power recorded its acquisition of Sarcs net assets if no entry is required for transaction event, select "No journal entry required in the first account feld) View con list Journal entry worksheet B Record the acquisition of Sark Corporation's tasts. ter Event General Journal Debit Credit Hundby Chewy View

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