The following book and fair values were available for Beech Company as of June 1:...

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Accounting

The following book and fair values were available for Beech Company as of June 1:

Items Book Value Fair Value

Inventory $ 439,750 $ 401,250

Land 776,250 1,019,250

Buildings 2,025,000 2,346,750

Trademarks 0 873,750

Accounts payable (114,500) (114,500)

Common stock (2,000,000) 0

Additional paid-in capital (500,000) 0

Retained earnings, 1/1 (445,000) 0

Revenues (506,500) 0

Expenses 325,000 0

Alder Company pays $4,070,000 cash and issues 24,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Beechs common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $34,500, and Alder pays $50,600 for legal fees to complete the transaction.

Items	Book Value	Fair Value
Inventory	$ 439,750	$ 401,250
Land	776,250	1,019,250
Buildings	2,025,000	2,346,750
Trademarks	0	873,750
Accounts payable	(114,500)	(114,500)
Common stock	(2,000,000)	0
Additional paid-in capital	(500,000)	0
Retained earnings, 1/1	(445,000)	0
Revenues	(506,500)	0
Expenses	325,000	0

Required:

Prepare Alders journal entries to record its acquisition of Beech.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field 1. Record the acquisition of Beech Company.

2.Record the legal fees related to the combination.

3. Record the payment of stock issuance costs.

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