Question: the following book and fair values were available for westmont...
The following book and fair values were available for Westmont Company as of March 1.
|Book Value||Fair Value|
|Additional paid-in capital||(500,000||)|
|Retained earnings 1/1||(434,500||)|
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.)