Conglomerate Company purchased Individual Company for $860,000 cash. A schedule of the fair values of Individual€™s assets and liabilities as of the purchase date follows.

1. Make the journal entry necessary for Conglomerate Company to record the purchase.
2. Assume that the purchase price is $460,000 cash. Make the journal entry necessary to record thepurchase.

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Individual Company Schedule of Asset and Liability Fair Values Assets Cash Receivables Inventory Land, buildings, and equipment 12,000 96,000 145,000 519,000 $772000 Liabilities Current liabilities Long-term debt $ 75,000 116,000 . 191.000 Net asset fair value $581.000