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Problem 2-20 (LO 2-6)

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 entry 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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