1. Fresh Foods, Inc. acquires Tasty Snacks Corporation for $150 million in cash, in a merger. Tasty Snacks’ balance sheet at the date of acquisition is as follows (in millions):

Current assets	$20
Plant and equipment	$90
Intangible assets	$10
Total assets	$120
Current liabilities	$18
Long-term debt	$50
Capital stock	$22
Retained earnings	$40
Treasury stock	$(10)
Total liabilities and equity	$120

A consulting firm values Tasty Snacks’ plant and equipment at $30 million and its reported intangibles at $20 million. Due to declining interest rates, long-term debt has a fair value of $60 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value.

• Prepare the journal entry Fresh Foods makes to record its acquisition of Tasty Snacks.