The December 31, 2011 abridged balance sheets for Evenhat Company and Larst Company on December 31, 2011 are given below:

   Evenhat Company

   Larst Company

Current assets    $ 260,000    $ 120,000

Land   100,000   200,000

Buildings – net   600,000   200,000

Equipment – net   440,000   480,000

Total assets   1,400,000   1,000,000

Current liabilities   100,000   120,000

Common stock   100,000   80,000

Additional paid-in capital   1,000,000   600,000

Retained earnings    200,000   200,000

Total claims   1,400,000   1,000,000

On January 1, 2012 Evenhat issued 50,000 shares with a fair value of $24 per share for all the outstanding shares of Larst. Larst continued to exist as a separate legal entity. The fair value of the assets and liabilities of Larst are equal to their book value except for the land (fair value of $300,000), buildings (fair value of $250,000) and equipment (fair value of $600,000).

Evenhat pays cash for the following costs in connection with the combination:

Registering and issuing its shares       $ 30,000

Other direct costs               50,000.

Required:

Complete steps 1 to 5 of the consolidation process in connection with the Evenhat and Larst combination.