Plastic Corporation is contemplating a business combination with Steel Corporation at December 31, 2011. Steel's condensed balance sheet on that date appears below (in millions):

Required
Prepare the journal entry to record the business combination of Plastic and Steel for each of the following purchase prices and combination methods.
a. Plastic merges with Steel by acquiring all of Steel's stock for $125,000 cash, in a statutory merger. Other direct cash acquisition costs are $25,000.
b. Plastic merges with Steel by acquiring all of Steel's stock for $100,000 cash, in a statutory merger. Other direct cash acquisition costs are $10,000.
c. Plastic acquires all of Steel's stock for $135,000 cash, in a stock acquisition. Other direct cash acquisition costs are $15,000.

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Assets Book Value Fair Value Cash and receivables.. Inventory.. Land Patents.__...**... 35,000 35,000 18,000 8,000 7,000 5,000 $35,000 45,000 20,000 11,000 14,000 10,000 $108,000 Liabilities and Stockholders' Equity $22,000 Common stock.. 50,000 36,000 $108,000