On January 1, 20X5, Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a par value of 100,000 and a fair value of 800,000. Brown also paid 10,000 in direct acquisition costs and 15,000 in stock issuance costs.

On this date, Larson's condensed account balances showed the following:

Book Value Fair Value

Current Assets 280,000 370,000

Plant and Equipment 440,000 480,000

Accumulated Depreciation (100,000)

Intangibles-Patents 80,000 120,000

Current Liabilities (140,000) (140,000)

Long-Term Debt (100,000) (110,000)

Common Stock (200,000)

Other Paid-In Capital (120,000)

Retained Earnings (140,000)

Required:

Record Brown's purchase of Larson Company's net assets on the books of Brown Inc.