! 2 Required information [The following information applies to the questions displayed below.] On July 1, TruData Company issues 10,200 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts. Webstat Fair Values $ Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital TruData Webstat Book Values Book Values $ (357,800) $ (134,000) 192,000 78,000 (124,000) (168,000) 186,000 58,000 168,000 162,000 228,000 190,000 398,000 214,000 112,000 70,000 (502,000) (378,000) (292,000) (62,000) (8,200) (30,000) 58,000 190,000 200,000 226,000 70,000 (348,000) On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill? The following book and fair values were available for Westmont Company as of March 1. 3 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Book Value Fair Value $ 406,000 $ 363,500 817,500 1,087,500 2,005,000 2,314,750 0 868,500 (128,500) (128,500) (2,000,000) (500,000) (424,500) (482,500) 307,000 Arturo pays cash of $4,389,750 to acquire Westmont. No stock is issued and Arturo pays $44,000 for legal fees to complete the transaction. Prepare Arturo's 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.)