Landers Inc is considering purchasing J&B Properties, which has the following assets and liabilities.

COST Fair Value

Accounts receivable....................................................................................$210,000 $200,000

Inventory.................................................................................................... $250,000 $260,000

Prepaid Insurance...................................................................................... $12,000 $12,000

Building and equipment (net)..................................................................... $88,000 $168,000

Accounts payable...................................................................................... $(130,000) $(130,000)

Net assets............................................................................................ $430,000 $510,000

1) Make the journal entry necessary for Landers Inc. to record the purcahse if the purcahse price is $650,000 cash.

2) Assume that the purchase price is $320,000 cash. Make the journal entry necessary to record the purchase.