On January 1, 20X2, Frost Company acquired all of TKK corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At this date, Frost shares were selling at $22 per share. Historical cost and fair value balance sheet data for TKK at the time of acquisition were as follows:

Frost paid legal fees for the transfer of assets and liabilities of $14,000, audit fee of $21,000 and listing application fees for the new shares of $7,000.

Required:
Prepare the journal entries made by Frost to record the businesscombination.

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Balance Sheet Item Cash & Receivables Inventory Buildings & Equipment Less: Acc Depreciation Total Assets Acc Historical CostFair Value $28,000 94,000 600.000 (240,000) S482,000 $41,000 65,000 160,000 216,000 $482,000 $28,000 122,000 470,000 S620,000 S41,000 63,000 ounts Payable Notes payable Common stock (S10 par value) Retained Eamings Total Liab & Equities