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

	Value in books			fair value
Inventory	ps	439,750		ps	401,250
Tierra		776,250			1,019,250
Buildings		2,025,000			2,346,750
customer relations		0			873,750
Accounts payable		(114.500	)		(114.500	)
Common actions		(2,000,000	)
Additional payment in principal		(500.000	)
Retained earnings 1/1		(445.000	)
Income		(506,500	)
Bills		325.000

Note: Parentheses indicate a credit balance.

Artur Company pays $4,170,000 in cash and issues 24,000 shares of its common stock of $2 par value ($50 fair value per share) for all Westmont common stock in a merger, after which Westmont will cease to exist as a separate entity . The share issuance costs are $34,500, and Arturo pays $50,600 for legal fees to complete the transaction.

 Required

Prepare Arthur's journal entry to record his Westmont acquisition.

Answer rating: 100% (QA)

Arthur Companys Journal Entry to Record Acquisition of Westmont Company Date March 1 Debit Cash 4170... View the full answer