1. Whole Harvest, Inc. acquires Fresh Bites Corporation for $180 million in cash, in a merger. Fresh Bites’ balance sheet at the date of acquisition is as follows (in millions):

Current assets	$35
Plant and equipment	$100
Intangible assets	$25
Total assets	$160
Current liabilities	$25
Long-term debt	$60
Capital stock	$30
Retained earnings	$45
Treasury stock	$(20)
Total liabilities and equity	$160

A consulting firm values Fresh Bites’ plant and equipment at $40 million and its reported intangibles at $30 million. Due to declining interest rates, long-term debt has a fair value of $65 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value.

• Prepare the journal entry Whole Harvest makes to record its acquisition of Fresh Bites.