Grand Champion Inc. purchased America’s Sweethearts Corporation on January' 1, 2016. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value):
Cash ............... $ 62,000
Accounts receivable ........ 13 8,000
Inventory ............ 185,000
Property, plant, and equipment .... 300,000
Patent .............. 65,000
Accounts payable .......... 200,000
Notes payable ............ 325,000
Grand Champion paid $900,000 for America’s Sweethearts. Record the purchase by Grand Champion.