Hendrie Inc. acquired the listed assets and liabilities of Smith Corp. for $1,600,000 cash on 1 January. The book values and fair values of the assets of Smith as of the date of acquisition were:

Book Value Fair Value

Accounts receivable $185,000 $185,000

Inventory 260,000 420,000

Property, plant, and equipment 370,000 620,000

Land 235,000 470,000

In addition, Smith Corp. had liabilities totalling $390,000 at the date of acquisition and a customer list estimated to have a fair value based on discounted future cash flows of $110,000.

Required:

Prepare the journal entry necessary for Hendrie to record the acquisition.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)