Use the same facts as in problem (22), but assume instead that Arturo pays cash of $4,200,000 to acquire Westmont. No stock is issued. Prepare Arturo’s journal entries to record its acquisition of Westmont.

Data From Problem 22:

The following book and fair values were available for Westmont Company as of March 1.

                

Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $25,000 and Arturo pays $42,000 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont.