question 6

6. The balance sheet for Saskatoon Inc. as at December 31, 2020 follows: 4 marks Saskatoon Inc. Balance Sheet December 31, 2020 Assets Cash Accounts receivable Inventory Land Plant and equipment (net) $ $ $ $ $ $ 610,000 557,000 2,570,000 2,580,000 2,140,000 8.457.000 Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings $ $ $ $ 337,000 2,590,000 5,530,000 8.457.000 Moose Jaw Enterprises purchased the net assets of Saskatoon Inc. on January 1, 2021 for $8,652,000 As part of the negotiations, Moose Jaw and Saskatoon agreed on the following fair values for the land and plant and equipment on Saskatoon's balance sheet: Land $ 3,030,000 Plant and equipment $ 1,985,000 The fair value of the other assets and liabilities is the same as the carrying value of the assets and liabilities. REQUIRED: Prepare the journal entry on the books of Moose Jaw Enterprises to record the purchase of the net assets of Saskatoon Inc., assuming Moose Jaw paid cash for the net assets