Lakecraft Company has the following balance sheet on December 31, 2011, when it is acquired for $950,000 in cash by Argo Corporation:

All assets have fair values equal to their book values. The combination is structured as a tax-free exchange. Lakecraft Company has a tax loss carryforward of $300,000, which it has not recorded. The balance of the $300,000 tax loss carryover is considered fully realizable. Argo is taxed at a rate of 30%.
Record the acquisition of Lakecraft Company by Argo Corporation.

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Lakecraft Company Balance Sheet December 31, 2011 Assets Liabilities and Equity $100,000 Current liabilities $ 60,000 Current assets . Equipment (net Building (net 200,000 Stockholders' equity: 270,000 Common stock ($5 par)$100,000 Retained earnings. Total liabilities and equity 410,000 510,000 $570,000 Total assets. $570,000