10 pali corporation exchanges 200 000 shares of newly issued 10 par value common sto 4307708

10 pali corporation exchanges 200 000 shares of newly issued 10 par value common sto 4307708

10) Pali Corporation exchanges 200,000 shares of newly issued $10 par value common stock with a fair market value of $40 per share for all the outstanding $5 par value common stock of Shingle Incorporated, which continues on as a legal entity. Fair value approximated book value for all assets and liabilities of Shingle. Pali paid the following costs and expenses related to the business combination:

Registering and issuing securities19,000

Accounting and legal fees150,000

Salaries of Pali's employees whose

    time was dedicated to the merger86,000

Cost of closing duplicate facilities223,000

Required:  Prepare the journal entries relating to the above acquisition and payments incurred by Pali, assuming all costs were paid in cash.

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