Kiln Corporation is considering the acquisition of Williams Incorporated. Kiln has asked you, its accountant, to evaluate the various offers it might make to Williams Incorporated. The December 31, 2011 balance sheet of Williams is as follows: Assets Liabilities and Equity Current Assets: Accounts Payable $40,000 Accounts Receivable $50,000 Stockholders' Equity: Inventory $300,000 Common stock $40,000 Noncurrent assets: Paid-in capital in $110,000 Land $20,000 excess of par Building (net) $70,000 Retained Earnings $250,000 Total Assets $440,000 Total L & E $440,000 The following fair values differ from existing book values: Inventory $250,000 Land $40,000 Building $120,000 Record the acquisition entry for Kiln Corporation that would result under each of the alternative offers. Value analysis is suggested. 1. Kiln Corporation issues 20,000 of its $10 par common stock with a fair value of $25 per share for the net assets of Williams Incorporated. 2. Kiln Corporation pays $385,000 in cash