On January 1, 20X3, PURE Products Corporation issued 12,000 shares of its $10 par value stock to acquire the net assets of Light Steel Company. Underlying book value and fair value information for the balance sheet items of Light Steel at the time of acquisition follow:

Light Steel shares were selling at $18 and PURE Products shares were selling at $50 just before the merger announcement. Additional cash payments made by PURE Products in completing the acquisition were
Finder€™s fee paid to firm that located Light Steel.... $10,000
Audit fee for stock issued by PURE Products..... 3,000
Stock registration fee for new shares of PURE Products.. 5,000
Legal fees paid to assist in transfer of net assets.... 9,000
Cost of SEC registration of PURE Products shares... 1,000

Required
Prepare all journal entries to record the business combination on PURE Products€™books.

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Balance Sheet Item Cash Accounts Receivable Inventory (LIFO basis) Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Book Value Fair Value $ 60,000 100,000 60,000 50,000 400,000 60,000 100,000 115,000 70,000 350,000 150,000) $520,000 $ 10,000 200,000 150,000 70,000 90,000 $520,000 $695,000 Accounts Payable Bonds Payable Common Stock (S5 par value) Additional Paid-In Capital Retained Earnings Total Liabilities & Equities 10,000 180,000