The following book and fair values were available for Westmont Company as of March 1.
Book Value Fair Value
Inventory $ 630,000 $ 600,000
Land 750,000 990,000
Buildings 1,700,000 2,000,000
Customer relationships 0 800,000
Accounts payable (80,000 ) (80,000 )
Common stock (2,000,000 )
Additional paid-in capital (500,000 )
Retained earnings 1/1 (360,000 )
Revenues (420,000 )
Expenses 280,000
Arturo Company pays $4,000,000 cash and issues 20,000 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 $25,000 and Arturo pays $42,000 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)