Reference no: EM132574274

Garran Corporation issued 480,000 shares of $10 par common stock with a fair value of $10,200,000 for all the voting common stock of Set Corporation. In addition, Garran incurred the following costs:

• Legal fees to arrange the business combination $100,000
• Cost of SEC registration, including accounting and legal fees 48,000
• Cost of printing and issuing net stock certificates 12,000
• Indirect costs of combining, including allocated overhead and executive salaries 80,000

Immediately before the acquisition in which Set Corporation was dissolved, Set's assets and equities were as follows (in thousands):

Book Value Fair Value:

Current assets $4,000 $4,400

Plant assets 6000 8,800

Liabilities 1,200 1,200

Common stock 8,000

Retained earnings 800

REQUIRED:

Question 1: Preparee all journal entries on Garran's books to record the acquisition.