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

Book Value Fair Value

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 630,000 $600,000

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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

Arturo Company pays $4,000,000 cash and issues 20,000 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 $25,000, and Arturo pays $42,000 for legal fees to complete the transaction. Prepare Arturos journal entries to record its acquisition of Westmont.