On January 1, 2016, your firm purchased a business unit by paying $1,200,000 cash. The acquired business unit consisted of the following assets:

Prepare the journal entry to record the companys purchase of the business unit

\begin{tabular}{|c|r|} \hline Items & \multicolumn{1}{|c|}{ Fair value } \\ \hline Inventory & 50,000 \\ \hline Building & 125,000 \\ \hline Land & 300,000 \\ \hline Patents & 525,000 \\ \hline \end{tabular}