Sun Corporation concluded the fair value of Tender Company was $65,000 and paid that amount to acquire its net assets. Tender reported assets with a book value of $51,000 and fair value of $63,000 and liabilities with a book value and fair value of $21,000 on the date of combination. Sun also paid $7,000 to a search firm for finder’s fees related to the acquisition.

Required:

Prepare the journal entries to be made by Sun to record its investment in Tender and its payment of the finder’s fees.