Barstow Company is contemplating the acquisition of the net assets of Crown Company for $875,000 cash. To complete the transaction, acquisition costs are $15,000. The balance sheet of Crown Company on the purchase date is as follows:

The following fair values have been obtained for Crown's identifiable assets and liabilities:
Current assets...................................$ 85,000
Land...............................................90,000
Building...........................................300,000
Equipment.......................................275,000
Liabilities........................................102,000
1. Record the acquisition of the net assets of Crown Company on Barstow Company's books.
2. Record the sale of the net assets on the books of Crown Company.
3. Record the acquisition of 100% of the common stock of Crown Company on Barstow's books. Crown Company will remain a separate legal entity.

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Crown Company Balance Sheet December 31, 2015 Assets Liabilities and Equi Current assets Land Building Accumulated depreciation-building Equipment Accumulated depreciation--equipment. (100,000 $80,000 Liabies 70,000 50,000 (200,000) Retained earnings 300,000 $100,000 100,000 Paid-in capitalin excess of par50,000 250,000 Common stock ($10 par) Total assets $600,000 Total liabilities and equity$600,000