Recording a Merger and a Stock Acquisition The Pack Company paid $2,000,000 in cash to the shareholders of the Sack Company for all of Sack's outstanding shares. Attorneys' fees related to the combination were $50,000, paid in cash. A comparison of the book and fair values of Sack's assets and liabilities appears below: Fair Value Cash and receivables. Marketable securities.. Inventory......... Plant assets......... Current liabilities...... Long-term debt Net assets Book Value .. $ 120,000 175,000 610,000 1,600,000 (340,000) (1,090,000) $1,075,000 120.000 150,000 800,000 2,000,000 (340,000) (980,000) $1,750,000 Required a Prepare the joumal entry made by Pack to record the business combination as a statutory merger. b. Prepare the journal entry made by Pack to record the business combination as a stock acquisition