1. Pure Organics, Inc. acquires Savory Snacks Corporation for $110 million in cash, in a merger. Savory Snacks’ balance sheet at the date of acquisition is as follows (in millions):

Current assets	$20
Plant and equipment	$75
Intangible assets	$15
Total assets	$110
Current liabilities	$18
Long-term debt	$50
Capital stock	$25
Retained earnings	$30
Treasury stock	$(13)
Total liabilities and equity	$110

A consulting firm values Savory Snacks’ plant and equipment at $35 million and its reported intangibles at $20 million. Due to declining interest rates, long-term debt has a fair value of $55 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value.

• Prepare the journal entry Pure Organics makes to record its acquisition of Savory Snacks.