Reference no: EM132488105

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

                     Book Value         Fair Value

Inventory           $300,000        $248,250

Land                 816,000          1,085,250

Buildings            2,050,000             2,375,500

Customer relationships 0                822,750

Accounts payable    (100,000)          (100,000)

Common stock (2,000,000)

Additional paid-in capital (500,000)

Retained earnings 1/1 (395,000)

Revenues (454,500)

Expenses 283,500

Point 1: Arturo Company pays $3,470,000 cash and issues 24,300 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 $25,800 and Arturo pays $47,400 for legal fees to complete the transaction.

Question 1: Make 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.)