On August 15, 2016, Willis Inc. acquired all of the outstanding common stock of Bork Inc. paying $7,400,000 cash. The book values and fair values of Bork assets and liabilities are listed below:

Book Value Fair Value

Accounts Receivable 1,080,000 975,000

Inventories 1,620,000 2,400,000

Property, Plant, Equipment 5,400,000 6,975,000

Accounts Payable 1,800,000 1,800,000

Bonds Payable 2,700,000 2,475,000

Prepare the journal entry to record the acquisition by Willis Inc.