To acquire the net assets of Slater Company, Pal Company issued 40,000 shares of its $2 par value common stock. On the date of the acquisition, the fair value of Pal Companys common stock was $12 per share. With respect to the merger, Pal incurred $4,000 of consulting costs (direct expense). Pal Company recorded the transaction under the acquisition method. Slaters balance sheet prior to the transaction was as follows