Reference no: EM132488080

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

                            Book Value                       Fair Value

Inventory           $231,000                     $191,750

Land                  822,000                     1,119,750

Buildings          2,130,000                        2,447,250

Customer relationships 0                           867,750

Accounts payable  (104,000)                   (104,000)

Common stock          (2,000,000)

Additional paid-in capital (500,000)

Retained earnings 1/1 (417,500)

Revenues (464,500)

Expenses 303,000

• Arturo pays cash of $4,365,500 to acquire Westmont. No stock is issued and Arturo pays $47,500 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.)