DEV Inc., is negotiating for the purchase of THK Ltd. The condensed statement of financial position of THK follows in an abbreviated form:

THK Ltd. Statement of Financial Position As at December 31, 2020
Assets				Liabilities and Shareholders' Equity
Cash		$118,000		Accounts payable				$92,000
Land		70,000		Long-term notes payable				351,000
Buildings (net)		244,000		Total liabilities				443,000
Equipment (net)		185,000		Common shares		$200,000
Copyright (net)		98,000		Retained earnings		72,000		272,000
Total assets		$715,000		Total liabilities and shareholders' equity				$715,000

DEV and THK agree that the land is undervalued by $30,000 and the business equipment is overvalued by $8,000. DEV agrees to purchase THK for $382,000 cash.

Required:

1. Prepare the entry to record the purchase of the business's net assets on DEV's books.
2. Explain why a business may pay more than the fair market value of the net identifiable assets of a company.