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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 $ 551,500 $ 515,250
Land 771,000 1,050,750
Buildings 1,895,000 2,252,000
Customer relationships 0 825,000
Accounts payable (102,000 ) (102,000 )
Common stock (2,000,000 )
Additional paid-in capital (500,000 )

Retained earnings, 1/1

 (430,000 )
Revenues (495,500 )
Expenses 310,000

Arturo Company pays $4,140,000 cash and issues 20,500 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmonts common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $27,600 and Arturo pays $46,900 for legal fees to complete the transaction.

Prepare Arturos journal entries to record its acquisition of Westmont.

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