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Question: the following book and fair values were available for westmont...

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

Book Value Fair Value
Inventory $ 692,500 $ 643,750
Land 757,500 1,047,750
Buildings 1,755,000 2,073,750
Customer relationships 0 804,750
Accounts payable (102,000 ) (102,000 )
Common stock (2,000,000 )
Additional paid-in capital (500,000 )
Retained earnings 1/1 (434,500 )
Revenues (488,500 )
Expenses 320,000

Arturo Company pays $3,580,000 cash and issues 29,800 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 $28,200 and Arturo pays $49,100 for legal fees to complete the transaction.

Prepare Arturo’s journal entry to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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