Prepare Journal entries to record an acquisition with direct costs and fair value/book value differences On January 1, Al-Harbi Corporation pays $400,000 cash and also issues 36,000 shares of $10 par common stock with a market value of $660,000 for all the outstanding common shares of Al- Swailem Corporation. In addition, Al-Harbi pays $60,000 for registering and issuing the 36,000 shares and $140,000 for the other direct costs of the business combination, in which Al-Swailem Corporation is dissolved. Summary balance sheet information for the companies immediately before the merger is as follows: Al-Harbi Book Value Al-Swailem Book Value Al-Swailem Fair Value Cash 700,000 80,000 80,000 Inventories 240,000 160,000 200,000 Other current assets 60,000 40,000 40,000 Plant assets-net 520,000 360,000 560,000 Total assets 1,520,000 640,000 880,000 Current liabilities 320,000 60,000 60,000 Other liabilities 160,000 100,000 80,000 Common stock, $10 840,000 400,000 Retained earnings 200,000 80,000 Total liabilities and owners' equity 1,520,000 640,000 Required: Prepare all journal entries on Al-Harbi's books to account for the acquisition.