Organic Delights, Inc. acquires Crunchy Treats Corporation for $180 million in cash, in a merger. Crunchy Treats’ balance sheet at the date of acquisition is as follows (in millions):

Current assets	$35
Plant and equipment	$110
Intangible assets	$25
Total assets	$170
Current liabilities	$28
Long-term debt	$65
Capital stock	$35
Retained earnings	$45
Treasury stock	$(20)
Total liabilities and equity	$170

A consulting firm values Crunchy Treats’ plant and equipment at $45 million and its reported intangibles at $30 million. Due to declining interest rates, long-term debt has a fair value of $70 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value.

Prepare the journal entry Organic Delights makes to record its acquisition of Crunchy Treats.

1. 
   
   •