Question
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
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 780,000 1,045,500 Buildings 1,755,000 2,056,500 Customer relationships 0 840,000 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. Prepare Arturos journal entry 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.) Record the legal fees related to the combination.
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