1. Premium Mfg. acquires Solar Parts, Inc. The acquisition involves the following payments:

Cash paid to the shareholders of SOLAR PARTS	$ 5,000
Cash paid to consultants and lawyers	1,200
New stock issued to the shareholders of SOLAR PARTS 1,000 shares, $2 par	36,000
Stock registration fees, paid in cash	900

Here is SOLAR PARTSs balance sheet at the date of acquisition with fair value information.

SOLAR PARTS, Inc.
	Book value	Fair value
Assets
Current assets	$ 1,000	$ 1,200
Property, plant, & equipment, net	27,000	20,000
Trademarks indefinite life	3,400	6,000
Total assets	$31,400
Liabilities & Equity
Current liabilities	$ 400	400
Long-term liabilities	26,000	25,000
Common stock, par value $2	500
Additional paid-in capital	8,500
Retained earnings	(3,400)
Treasury stock	(600)
Total liabilities & equity	$31,400

The following previously unreported intangible assets are identified as part of the acquisition.

	Fair Value
Licensing agreements estimated useful life 10 years	$ 900
Order backlogs estimated useful life 9 months	4,000
In-process R&D estimated useful life 2 years	1,500

The acquisition also results in a deferred tax asset valued at $1,000, which management estimates to be non-current. Premium Mfg. acquires all of the assets and liabilities of SOLAR PARTS.

Prepare the journal entry or entries Premium Mfg. makes to record this acquisition.