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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