1. Parkland buys all of Sander Companys assets and liabilities. Sander balance sheet at the date of acquisition, including fair value information on its reported assets and liabilities, is as follows:

	Book Value Dr (Cr)	Fair Value Dr (Cr)
Assets
Cash, receivables	$ 1,000,000	$ 950,000
Inventories	5,000,000	4,000,000
Property and equipment	60,000,000	45,000,000
Total assets	$ 66,000,000
Liabilities & Equity
Accounts and notes payable	$ 30,000,000	29,000,000
Common stock	500,000
Additional paid-in capital	15,000,000
Retained earnings	20,500,000
Total liabilities and equity	$ 66,000,000

Assets and liabilities attributed to Sander, not currently reported on its books are:

	Fair value
Favorable leaseholds	$ 3,000,000
Brand names	9,500,000
In-process R&D	1,000,000
Warranty liabilities	1,800,000

In addition, a deferred tax liability of $2,000,000 is recognized as part of the acquisition.

The acquisition terms are as follows:

• Parkland paid Sander shareholders a total of $25,000,000 in cash.
• Parkland issued a total of 2,000,000 new shares of its common stock to Sander shareholders. Parklands shares have a par value of $1/share and a total fair value of $92,000,000.
• Parkland paid $900,000 in cash for registration fees to issue the shares.
• Parkland paid $1,000,000 to a brokerage company for merger advisement, all paid in cash.

prepare the journal entry to record this acquisition on Parklands books.