On January 1 20X3 PURE Products Corporation issued 12 000 shares
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

Prepare all journal entries to record the business combination on PURE Products’books.
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