Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company's balance sheet was as follows:

	Book Value	Fair Value
Cash	$ 120,000	$ 120,000
Receivables (net)	192,000	228,000
Inventory	360,000	396,000
Plant and equipment (net)	480,000	540,000
Land	420,000	660,000
Total assets	$ 1,572,000	$ 1,944,000
Liabilities	$540,000	$594,000
Common stock ($ 5 par value)	480,000
Other contributed capital	132,000
Retained earnings	420,000
Total equities	$1,572,000

Required:

1. Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of the liabilities of Saville Company if the amount paid was $1,560,000 in cash.
2. Repeat the requirement in (A) assuming that the amount paid was $990,000.