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5. The financial statements for Jode Inc. and Lakely Corp., just prior to their combination,...

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5. The financial statements for Jode Inc. and Lakely Corp., just prior to their combination, for the year ending December 31, 2009, follow. Lakely's buildings were undervalued on its financial records by $60,000, and equipment is undervalued by $40,000. On December 31,2009 , Jode issued 50,000 new shares of its $10 par value stock to the owners of Lakely in exchange for all of the outstanding shares of that company. Jode's shares had a fair value on that date of $30 per share. Besides the undervalued buildings and equipment, all other assets and liabilities are fairly.yalued. The Lakely Corporation is dissolved, and only Jode Inc. continues. Required: Prepare the entry by Jode to record the acquisition of Lakely Corporation. (8 points)

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