Kiln Corporation is considering the acquisition of Williams Incorporated. Kiln has asked you, its accountant, to evaluate the various offers it might make to Williams Incorporated. The December 31, 2011, balance sheet of Williams is as follows:

The following fair values differ from existing book values:
Inventory ......... $250,000
Land .......... 40,000
Building .......... 120,000
Required
Record the acquisition entry for Kiln Corporation that would result under each of the alternative offers. Value analysis is suggested.
1. Kiln Corporation issues 20,000 of its $10 par common stock with a fair value of $25 per share for the net assets of Williams Incorporated.
2. Kiln Corporation pays $385,000 in cash.

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Williams Incorporated Balance Sheet December 31, 2011 Assets Liabilities and Equity Current assels Accounts payable 40,000 Accounts receivable. Inventory . .. $ 50,000 300,000 $350,000 Stockholders' equity: Noncurrent assets: 40,000 Common słock Paid-in capital in excess of par 110,000 20,000 Land. . Building (net).. 0,00090,000 Retained earnings.. 250,000 400,000 $440,000 Total assets $440,000 Total liabilities and equity