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
$
200,500
$
167,000
Land
817,500
1,097,250
Buildings
2,175,000
2,506,500
Customer relationships
0
860,250
Accounts payable
(87,000
)
(87,000
)
Common stock
(2,000,000
)
Additional paid-in capital
(500,000
)
Retained earnings, 1/1
(431,500
)
Revenues
(478,500
)
Expenses
304,000
Arturo pays cash of $4,424,000 to acquire Westmont. No stock is issued and Arturo pays $49,300 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.)
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