Bargain Purchase: Gilmore Corporations net assets have fair values as described below. Current assets$500,000 Land800,000 Building and equipment..1,500,000 Loans payable(100,000) Nanton Company pays $4,000,000 for Gilmore Corporation, and records the acquisition as a merger. Nanton Corporation determines that the identifiable intangibles valued at $1,500,000, not previously reported on Gilmores books, also are recognized as acquired assets.

Required a. Prepare a schedule to calculate the gain on acquisition. b. Prepare Nantons journal entry to record the merger.