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The following book and fair values were available for Westmont Company as of March 1. Book Value Inventory Land $ 350,000 Fair Value $
The following book and fair values were available for Westmont Company as of March 1. Book Value Inventory Land $ 350,000 Fair Value $ 298,250 820,500 1,085,250 Buildings 2,040,000 2,361,000 Customer relationships Accounts payable (105,000) 871,500 (105,000) Common stock (2,000,000) Additional paid-in capital (500,000) Retained earnings, 1/1 (425,500) Revenues Expenses (496,000) 316,000 Arturo Company pays $3,900,000 cash and Issues 21,300 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock Issue costs amount to $28,900 and Arturo pays $48,000 for legal fees to complete the transaction. Prepare Arturo's 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.) View transaction list Journal entry worksheet < 1 2 3 Record the acquisition of Westmont Company.
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