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Jack Company is a corporation that was organized on July 1, 2011. The June 30, 2016 balance sheet for Jack is as follows:

Jack Company is a corporation that was organized on July 1, 2011. The June 30, 2016 balance sheet for Jack is as follows:

Assets Liabilities & Equity
Investments $400,500 Current Liabilities $1,475,000
Accounts Receivable $1,250,000 Common Stock ($10 par) $1,200,000
Allowance for ($300,000) Retained Earnings $1,825,000
doubtful accts Total L & E $4,500,000
Inventory $1,500,000
Prepaid Insurance $18,000
Land $58,000
Mach & Equip (net) $1,473,400
Goodwill $100,000
Total Assets $4,500,000

The experience of other companies over the last several years indicates that the machinery and equipment can be sold at 130% of its book value. An analysis of the accounts receivable indicates that the realizable values is $925,000. An independent appraisal made in June 2016 values the land at $70,000. Using the lower-of-cost-or-market rule, inventory is to be restated at $1,200,000. Calway Corporation plans to exchange 18,000 of its shares for the 120,000 Jack shares. During June 2016, the fair value of a share of Calway Corporation is $270. Acquisition costs are $12,000. The stockholders’ equity account balances of Calway Corporation as of June 30, 2011 are as follows:

Common Stock ($10 par) $2,000,000
Paid-in capital in excess of par $580,000
Retained Earnings $2,496,400
Total stockholders’ equity $5,076,400

Record the acquisition of Jack Company by Calway on July 1, 2016. Use value analysis to support the acquisition entries.
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