Pitan Company pays $2,000,000 in cash to acquire Sictory Companys assets and liabilities (a merger). Book and fair values of Sictorys assets and liabilities appear below.

	Book Value	Fair Value
Current assets	$ 300,000	$ 200,000
Held To Maturity investments	100,000	120,000
Buildings, net	1,200,000	1,000,000
Equipment, net	2,000,000	500,000
Identifiable intangible assets	0	1,000,000
Liabilities	500,000	520,000

Using a T-account template:

• Prepare the entry to recognize Pitans acquisition of Sictory.