Philadelphia Textile Company acquired Boston Fabric Company for $590,000 cash when Bostons only assets, property and equipment,

Question:

Philadelphia Textile Company acquired Boston Fabric Company for $590,000 cash when Boston’s only assets, property and equipment, had a book value of $590,000 and a market value of $650,000. Philadelphia also assumed Boston’s bonds payable of $125,000. After the acquisition, Boston would cease to exist as a separate legal entity after merging with Philadelphia. Record the acquisition.