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Business, 31.10.2019 04:31 elizaannettem4466
The following book and fair values were available for westmont company as of march 1. book value fair value inventory $ 281,500 $ 250,000 land 805,500 1,112,250 buildings 2,070,000 2,416,500 customer relationships 0 870,000 accounts payable (82,500 ) (82,500 ) common stock (2,000,000 ) additional paid-in capital (500,000 ) retained earnings 1/1 (421,500 ) revenues (446,000 ) expenses 293,000 arturo company pays $3,960,000 cash and issues 29,500 shares of its $2 par value common stock (fair value of $50 per share) for all of westmontâs common stock in a merger, after which westmont will cease to exist as a separate entity. stock issue costs amount to $29,400 and arturo pays $50,000 for legal fees to complete the transaction. prepare arturoâs journal entry to record its acquisition of westmont
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