1. Green Grocer, Inc. acquires Nutty Bites Corporation for $80 million in cash, in a merger. Nutty Bites’ balance sheet at the date of acquisition is as follows (in millions):

Current assets	$15
Plant and equipment	$50
Intangible assets	$10
Total assets	$75
Current liabilities	$10
Long-term debt	$30
Capital stock	$20
Retained earnings	$25
Treasury stock	$(10)
Total liabilities and equity	$75

A consulting firm values Nutty Bites’ plant and equipment at $25 million and its reported intangibles at $15 million. Due to declining interest rates, long-term debt has a fair value of $35 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value.

• Prepare the journal entry Green Grocer makes to record its acquisition of Nutty Bites.