Problem 3-16 (LO 3-6) Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $490,250 in cash and issued 127,000 shares of its own $1 par value common stock. On this date, Francisco's stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran's assets and liabilities are assigned to a new reporting unit. The following reports the fair values for the Beltran reporting unit for January 1, 2017, and December 31, 2018, along with their respective book values on December 31, 2018. Beltran Reporting Unit Cash Receivables Inventory Patents Customer relationships Equipment (net) Goodwill Accounts payable Long-term liabilities Fair Values 1/1/17 $ 131,500 291,500 445,500 560,500 617,250 322,500 Fair Values 12/31/18 $ 83,500 342,000 492,000 670,000 590,000 241,000 Book Values 12/31/18 $ 83,500 342,000 478,800 516,000 555, 250 233,500 436,000 (256,000) (518,000) (176,000) (614,500) (256,000) (518,000) Journal entry worksheet Record the assets acquired and the liabilities assumed in the Beltran merger on January 1, 2017. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2017