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Exercise 2-1 Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company's balance sheet was as follows: Cash Receivables (net) Inventory Plant and equipment (net) Land Total assets Book Value $114,560 177,720 336,480 506,100 449,560 $1,584,420 Fair Value $114,560 233,440 421,020 518,900 694,290 $1,982,210 $551,490 Current Liabilities Common stock ($5 par value) Other contributed capital Retained earnings Total equities $541,840 526,790 130,730 385,060 $1,584,420 (a) Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of the liabilities of Saville Company if the amount paid was $1,563,030 in cash. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit V Account Titles and Explanation Cash Common Stock Gain on Business Combination Goodwill Inventory Land Liabilities Loss on Business Combination No Entry Other Contributed Capital Plant and Equipment Receivables Retained Earnings