On January 1, 2020, AMI Corporation purchased the non-cash net assets of Culver ud, for $8,087,900. Following is the statement of financial position of Culver Ltd. from the company's year-end the previous day: 5 Culver Ltd. Statement of Financial Position As at December 31, 2019 7 8 9 10 11 12 13 14 5 $630,000 554,000 2,510,000 2,070,000 2,570,000 $8,334,000 Cash Accounts receivable Inventory Property, Plant and equipment (net) Land Total assets Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total liabilities and shareholders' equity 5 - $324,000 2,520,000 5,490,000 $8,334,000 As part of the negotiations, AMI and Culver agreed on the following fair values for the items on Culver's statement of financial positions 2:41 Accounts receivable 25 Inventory 26 Property, plant and equipment 27 Land 28 Accounts payable 29 30 Instructions $552,400 2,265,000 1,870,000 3,620,000 313,500 31 Prepare the journal entry on the books of AMI Corporation to record the purchase of the net assets of Culver Ltd, assuming AMI paid cash for the net assets (show all workings) 10 marks Date Accounts and Explanations Debit Credit 32 33 34 5 5