1. Natural Foods, Inc. acquires Delicious Bites Corporation for $90 million in cash, in a merger. Delicious Bites’ balance sheet at the date of acquisition is as follows (in millions):

Current assets	$25
Plant and equipment	$65
Intangible assets	$10
Total assets	$100
Current liabilities	$15
Long-term debt	$40
Capital stock	$20
Retained earnings	$30
Treasury stock	$(5)
Total liabilities and equity	$100

A consulting firm values Delicious Bites’ plant and equipment at $30 million and its reported intangibles at $15 million. Due to declining interest rates, long-term debt has a fair value of $45 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value.

• Prepare the journal entry Natural Foods makes to record its acquisition of Delicious Bites.