Fresh Delights, Inc. acquires Wholesome Bites Corporation for $175 million in cash, in a merger. Wholesome Bites’ balance sheet at the date of acquisition is as follows (in millions):

Current assets	$40
Plant and equipment	$115
Intangible assets	$20
Total assets	$175
Current liabilities	$28
Long-term debt	$70
Capital stock	$35
Retained earnings	$45
Treasury stock	$(20)
Total liabilities and equity	$175

A consulting firm values Wholesome Bites’ plant and equipment at $45 million and its reported intangibles at $25 million. Due to declining interest rates, long-term debt has a fair value of $75 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value.

Prepare the journal entry Fresh Delights makes to record its acquisition of Wholesome Bites.

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