Profeet Company purchased the Starless Company in a nontaxable combination
Profeet Company purchased the Starless Company in a nontaxable combination consummated as a stock acquisition. Profeet issued 10,000 shares of $5 par value common stock, with a market value of $70, in exchange for all the stock of Starless. The following information about Starless Company is available on the combination date.



Required:
Prepare the journal entry to record the acquisition, taking into account taxeffects.
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