Stafford Company purchased Deaver Manufacturing for $1,400,000 cash on January 1. The book value and fair value of the assets of Deaver as of the date of the acquisition follow:

In addition, Deaver had liabilities totaling $500,000 at the time of the acquisition. Deaver has no other separately identifiable intangible assets. Make the journal entry necessary on the books of Stafford Company to record theacquisition.

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Book Value Fair Value Cash Accounts receivable Inventory Patent Property. plant, and equipment. $ 20.000 190,000 320,000 80,000 750,000 $1,360.000 $20,000 190,000 260,000 600,000 Totals $1,070,000