The following book and fair values were available for Westmont Company as of March 1.

	Book Value			Fair Value
Inventory	$	494,000		$	449,500
Land		763,500			1,060,500
Buildings		1,975,000			2,303,500
Customer relationships		0			859,500
Accounts payable		(118,000	)		(118,000	)
Common stock		(2,000,000	)
Additional paid-in capital		(500,000	)
Retained earnings, 1/1		(427,000	)
Revenues		(486,000	)
Expenses		298,500

Arturo Company pays $4,060,000 cash and issues 29,600 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmonts common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $31,200 and Arturo pays $49,000 for legal fees to complete the transaction.

Prepare Arturos journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Need help on transaction 1, see incorrect

No	Transaction	General Journal	Debit	Credit
1	1	Inventory correct	449,500
		Land correct	1,060,500selected answer correct
		Buildings correct	2,303,500selected answer correct
		Customer relationships correct	859,500selected answer correct
		Accounts payable incorrect		118,000selected answer incorrect
		Cashselected correct		4,060,000selected answer correct
		Gain on bargain purchases incorrect		495,000selected answer incorrect
2	2	Professional services expense correct	49,000selected answer correct
		Cashselected correct		49,000selected answer correct
3	3	Additional paid-in capital correct	31,200selected answer correct
		Cash correct		31,200