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Business, 25.01.2020 02:31 yasdallasj

Bower company purchased lark corporation’s net assets on january 3, 20x2, for $632,000 cash. in addition, bower incurred $9,000 of direct costs in consummating the combination. at the time of acquisition, lark reported the following historical cost and current market data:

balance sheet item book value fair value
assets
cash & receivables $ 57,000 $ 57,000
inventory 114,000 165,000
buildings & equipment (net) 207,000 307,000
patent — 203,000

total assets $ 378,000 $ 732,000

liabilities & equities
accounts payable $ 20,000 $ 20,000
common stock 98,000
additional paid-in capital 66,000
retained earnings 194,000

total liabilities & equities $ 378,000

required:

prepare the journal entry or entries with which bower recorded its acquisition of lark’s net assets. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

record the payment of merger costs.
record the acquisition of lark corporation net asets.

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