Problem 3 MNO acquired STW's net assets. At the time of the acquisition STW's Balance sheet was as follows: Accounts Receivable $140,000 Inventory 80,000 Equipment, Net 40,000 Building, Net 270,000 Land 150,000 Total Assets $680,000 Bonds Payable $100,000 Common Stock 50,000 Retained Earnings 450,000 Total Liabilities and Stockholders' Equity $600,000 Fair values on the date of acquisition (book value and fair values are the same for accounts receivable): Inventory $110,000 Equipment 30,000 Building 370,000 Land 130,000 Brand Name 60,000 Bonds payable 120,000 Acquisition costs: $ 7,000 Required: Record the entry for the purchase of the net assets of STW at the following cash prices: a. $800,000 b. $310,000