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.
Prepare Arturo % u 2019s journal entry to record its acquisition of Westmont.