Power Company purchased Sark Corporations net assets on January 3, 20X2, for $629,000 cash. In addition, Power incurred $7,000 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 $ 60,000 $ 60,000 Inventory 109,000 153,000 Buildings & Equipment (net) 219,000 303,000 Patent 208,000 Total Assets $ 388,000 $ 724,000 Liabilities & Equities Accounts Payable $ 26,000 $ 26,000 Common Stock 99,000 Additional Paid-In Capital 66,000 Retained Earnings 197,000 Total Liabilities & Equities $ 388,000 Required: Prepare the journal entry or entries with which Power recorded its acquisition of Sarks net assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the payment of merger costs.

Record the acquisition of Sark Corporation's net assets.