please help. example problem I need detailed explanation please. This practice problem was given please help me understand it. They gave us an answer but I don't understand how it's correct.

Problem

The Logan Company is purchasing the Nylon Sail Company.

The Nylon Sail Company's Balance Sheet information on June 30, 2020 is as follows:

Assets

Cash $ 43,600

Accounts Receivable 55,800

Inventories 141,000

Land 95,000

Building, net 368,000

Equipment, net 39,760

Patent 55,000

Trademark 5,000

Total Assets $803,160

Liabilities

Accounts Payable $ 77,440

Stockholders' Equity

Common Stock $600,000

Retained Earnings 125,720

Total Liabilities and

Stockholder's Equity $803,160

Logan Company will pay $800,000 cash down, sign and issue a Note Payable to Nylon

Sail Company in the amount of $500,000, and assume the Accounts Payable. All

assets listed in the balance sheet will be acquired by Logan Company at their listed

amounts, with the exception of the following assets which will be acquired at their

agreed fair values as follows:

Inventories $175,300

Land $145,000

Building $502,000

Patent $85,000

Trademark $25,000

Solve

1. Prepare the journal entries on Logan Company's books to record the purchase.

2. Prepare the journal entry on Nylon Sail Company's books to record the sale.

3 Prepare list of the specific components of the gain for Nylon Sail Company.

4.Prepare the Balance Sheet for Nylon Sail Company as of June 30, 2020

immediately after the sale to Logan Company.

Answer given:

1.Jounral

Cash Dr 43,600

Accounts Receivable Dr 55,800

Inventory Dr175,300

Land Dr 145,000

Building Dr502,000

Equipment Dr39,760

Patent Dr85,000

TradeMark Dr25,000

Goodwill Dr 305,980

To Accounts Payable77,440

To Cash800,000

To Note Payable500,000

2. Journal Entries in the books of Nylon Sail Company

Accounts Payable Dr77,440

Cash Dr 800,000

Note Payable Dr500,000

To Cash43,600

To Accounts Receivable55,800

To Inventory175,300

To Land145,000

To Building 502,000

To Equipment39,760

To Patent 85,000

To TradeMark25,000

To Goodwill (Balacing Figure)305,980

3. Items giving Specific gain

ParticularsBook ValueFair ValueGain

Inventory 141,000 175,300 34,300

Land95,000145,000 50,000

Building368,000502,000134,000

Patent 55,00085,00030,000

TradeMark5,00025,00020,000

4.was not given