SHORT PROBLEM I $(10$ POINTS$)$

On June $28,2023,$ Poison Company issued $72,000$ shares of its $$1$ common stock for all $61,000$ of Slash Incorporated's $$1$ par common shares.

Poison's stock was selling for $$31$ per share immediately prior to the combination, and Slash's stock was selling for $$39$ per share.

Prior to June $28,$ Poison incurred merger costs of $$54,000$ and $$86,000$ of costs to register and issue the new shares of stock.

Following the combination, Slash operated as a subsidiary of Poison.

Required:

Prepare the required journal entry that Poison would make to record the business combination with Slash.

Acquisition Expense, $54000,$ Investmentin Slash Comp Deferred stock issue costs $36000$ cash

$140,000$

What journal entry, if any, would be made by Slash, Inc.?

No Journal Entry