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

Current Assets- $ 280,000

Plant and Equipment-440,000

Accumulated Depreciation- (100,000)

Intangibles - Patent 80,000

Current Liabilities (140,000)

Long-Term Debt (100,000)

Common Stock(200,000)

Other Paid-in Capital (120,000)

Retained Earnings(140,000)

Fair Value

Current Assets $ 370,000

Plant and Equipment 480,000

Accumulated Depreciation

Intangibles - Patents 120,000

Current Liabilities (140,000)

Long-Term Debt (110,000)

Required:

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