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Please provide me with the correct solution for a big THUMP UP ;) The following book and fair values were available for Westmont Company as
Please provide me with the correct solution for a big THUMP UP ;)
The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value 551,500 515,250 771,000 1,050,750 1,895,000 2, 252,000 825,000 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses (102,000) (102,000) (2,000,000) (500,000) (430,000) (495,500) 310,000 Arturo Company pays $4,140,000 cash and issues 20,500 shares of its $2 par value common stock (fair value of $50 per share) for al of Westmont's common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $27,600 and Arturo pays $46,900 for legal fees to complete the transaction. Prepare Arturo's journal entry to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the acquisition of Westmont CompanyStep by Step Solution
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