Grand Champion Inc. purchased America’s Sweethearts Corporation on January 1, 2019. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value):
Cash ................................................................$ 62,000
Accounts receivable ......................................138,000
Inventory .........................................................185,000
Property, plant, and equipment ...................300,000
Patent .................................................................65,000
Accounts payable ............................................200,000
Notes payable ..................................................325,000
Grand Champion paid $900,000 for America’s Sweethearts. Record the purchase by Grand Champion.