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

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 Westmont€™s 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 Arturo€™s journal entry to record its acquisition ofWestmont.

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Book Value Fair Value $630,000 600,000 990,000 1,700,000 2,000,000 800,000 5 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues 750,000 (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000