Arturo Company pays $3,740,000 cash and issues 21,500 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $31,700 and Arturo pays $46,100 for legal fees to complete the transaction.

Prepare Arturo’s journal entry 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.

The following book and fair values were available for Westmont Company as of March 1.

Book ValueFair Value Inventory$367,500 $318,000 Land 756,000 998,250 Buildings 2,040,000 2,346,000 Customer relationships 0 842,250 Accounts payable (88,000) (88,000) Common stock (2,000,000) Additional paid-in capital (500,000) Retained earnings 1/1 (412,000) Revenues (446,000) Expenses 282,500