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

Book Value Fair Value

Inventory $ $588,500$ $ $549,000$

Land $780,0001,045,500$

Buildings $1,755,0002,056,500$

Customer relationships $0840,000$

Accounts payable $(101,500)(101,500)$

Common stock $(2,000,000)$

Additional paid$-$in capital $(500,000)$

Retained earnings, $1/1$

$(378,000)$

Revenues $(448,000)$

Expenses $304,000$

Arturo pays cash of $$4,218,500$ to acquire Westmont. No stock is issued and Arturo pays $$45,400$ for legal fees to complete the transaction.