Expandomania has negotiated to purchase an existing company for $$75,000.$ The current balance sheet with negotiated fair values of the assets is shown below:

Book

Fair

Value

Value

Accounts Receivable$($net$)$

$11,000$

$10,000$

Inventory

$60,000$

$60,000$

Land

$10,000$

$15,000$

Building $($net$)$

$90,000$

$125,000$

Equipment$($net$)$

$229,000$

$200,000$

Total Assets

$400,000$

$410,000$

Accounts Payable

$50,000$

Notes Payable $($long$-$term$)$

$300,000$

Common Stock

$20,000$

Retained Earnings

$30,000$

Total Liabilities & Equity

$400,000$

The fair value of the liabilities equals the book value. Journalize the acquisition.