The journal entry recorded for the LI acquisition was as follows: DR Investment in LI shares 650,000 CR Cash 650,000 LI's balance sheet as of the date of acquisition was as follows: Cash $110,000 Accounts receivable 85,000 Furniture and fixtures, net 95,000 Total assets $290,000 Accounts payable $ 50,000 Long-term debt 115,000 Common shares 10,000 Retained earnings 115,000 Total liabilities and equity $290,000 For the assets and liabilities reported above, fair value is equal to book value, except for the furniture and fixtures, which have a fair value of $40,000 and a remaining useful life of four years