The following book and fair values were available for Westmont Company as of March 1....
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Accounting
The following book and fair values were available for Westmont Company as of March 1.
Book Value
Fair Value
Inventory
$
404,500
$
353,250
Land
816,000
1,080,000
Buildings
2,025,000
2,361,750
Customer relationships
0
831,000
Accounts payable
(102,500
)
(102,500
)
Common stock
(2,000,000
)
Additional paid-in capital
(500,000
)
Retained earnings, 1/1
(456,000
)
Revenues
(471,500
)
Expenses
284,500
Arturo pays cash of $4,395,500 to acquire Westmont. No stock is issued and Arturo pays $50,900 for legal fees to complete the transaction.
Prepare Arturos journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
RECORD THE ACQUISITION OF WESTMONT COMPANY
RECORD THE LEGAL FEES RELATED TO THE COMBINATION
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