Question 4 (10 marks) The following book and fair values were available for NorthStar Company as of March 1. Book value Fair value Inventory Land $630,000 $600,000 750,000 990,000 Buildings 1,700,000 2,000,000 Customer relationships -0- 800,000 Accounts payable (80,000) (80,000) Common stock (2,000,000) Additional paid-in capital (500,000) Retained earnings, 1/1 (360,000) Revenues (420,000) Expenses 280,000 BluePrint Company pays $4,200,000 cash for all of NorthStar's common stock in a merger, after which NorthStar will cease to exist as a separate entity. BluePrint pays $70,000 for legal fees to complete the transaction. Required: Pass the necessary journal entries in the books of BluePrint for its acquisition of NorthStar's common stocks. ANSWER: