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


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Arturo Company pays $4,010,000 cash and issues 26,300 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 $25,600 and Arturo pays $44,700 for legal fees to complete the transaction.

 

What are 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.)


(a) What is the acquisition of Westmont Company?

(b) What are the legal fees related to the combination?

(c) What is the payment of stock issuance costs?

Top Answer

1.) Book and fair values are not provided, but i ll give you proper format for this,... View the full answer

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S. No.
Account Title and explanation
Debit
Credit
1
Inventory
XX
Land
XX
Building
XX
Customer Relationships
XX
Goodwill/Capital reserve (b.f)
Account Payable
XX
Common Stock
52600
Additional paid...

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