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 ItemBook ValueFair ValueAssetsCash and Receivables$ 50,000$ 50,000Inventory100,000150,000Buildings and Equipment (net)200,000300,000Patent0200,000Total Assets$ 350,000$ 700,000Liabilities and EquitiesAccounts Payable$ 30,000$ 30,000Common Stock100,000Additional Paid-In Capital80,000Retained Earnings140,000Total Liabilities and Equities$ 350,000

Required:

Prepare the journal entry or entries with which Power recorded its acquisition of Sark's net assets.