The following book and fair values were available for Westmont
Company as of March 1. Book Value Fair Value Inventory $ 350,000 $
298,250 Land 820,500 1,085,250 Buildings 2,040,000 2,361,000
Customer relationships 0 871,500 Accounts payable (105,000 )
(105,000 ) Common stock (2,000,000 ) Additional paid-in capital
(500,000 ) Retained earnings 1/1 (425,500 ) Revenues (496,000 )
Expenses 316,000 Arturo pays cash of $4,380,000 to acquire
Westmont. No stock is issued and Arturo pays $48,000 for legal fees
to complete the transaction. Prepare Arturo’s 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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