Texas corporation acquired Arkansas on Jan 1, 20x3 by issuing 20,000 shares of its $20 par common stock for all 50,000 shares of Arkansas stock. Arkansas reported additional paid-in capital of 100,000 and retained earnings of 350,000. Texas stock was selling for 45 per share immediately after the combination subsequent to the combination Arkansas operated as a subsidiary of Texas.

Prepare the journal entry or entries that Texas would make to record the business combination with Arkansas