Power Company purchased Sark Corporation's net assets on January 3, 20X2, for $639,000 cash. In addition,...

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Power Company purchased Sark Corporation's net assets on January 3, 20X2, for $639,000 cash. In addition, Power incurred $11,000 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 Assets Cash & Receivables Inventory Buildings & Equipment (net) Patent Total Assets Book Value Fair Value $ 56,000 109,000 205,000 $ 56,000 164,000 316,000 218,000 $370,000 $754,000 Liabilities & Equities Accounts Payable Additional Paid-In Capital Common Stock Retained Earnings Total Liabilities & Equities $ 22,000 98,000 $ 22,000 77,000 173,000 $370,000 Required: Prepare the journal entry or entries with which Power recorded its acquisition of Sark's net assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Record the payment of merger costs. Record the acquisition of Sark Corporation's net assets. Power Company purchased Sark Corporation's net assets on January 3, 20X2, for $639,000 cash. In addition, Power incurred $11,000 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 Assets Cash & Receivables Inventory Buildings & Equipment (net) Patent Total Assets Book Value Fair Value $ 56,000 109,000 205,000 $ 56,000 164,000 316,000 218,000 $370,000 $754,000 Liabilities & Equities Accounts Payable Additional Paid-In Capital Common Stock Retained Earnings Total Liabilities & Equities $ 22,000 98,000 $ 22,000 77,000 173,000 $370,000 Required: Prepare the journal entry or entries with which Power recorded its acquisition of Sark's net assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Record the payment of merger costs. Record the acquisition of Sark Corporation's net assets.