s. Acquisitions (10 points) Squishy Squish purchased Munchy Munch for $30,000 in cash on May 20, 2008. Squishy Squish's and Munchy Munch's financial statements the day of purchase are as follows Munchy Munch May 20, 2008 Squishy Squish May 20, 2008 Cash A/R(net) Inventory PP&E (net) Tradename Goodwil Total Assets S5,000 Cash 2.100 A/R(net) 8,300 Inventory 17,100 PP&E (net) 14,000 Copywrites 2,000 Goodwill $75,000 70,000 125,000 300,215 7,650 25,000 S602,775 S55,500 Total Assets A/P Note payable Owner's equity Total liabilities and owner's equity $39,800 500,000 62.975 $602,775 $4,500 A/P 42,000 Bonds payable 9,000 Owner's equity S55,500 Total liabilities and owner's equity The tradename is for the Munchy Munch name, which will be discontinued upon the merger. In addition, Munchy Munch has a paten t that was developed internally (the legal costs were immaterial). The market value is S4,500. The inventory is old and therefore is valued at only $4,000. Record the journal entryties) for the purchase of Munchy Munch by Squishy Squish. company spent a total of $6,000 on the development of that patent, but the fair