On August 15, 2013, Willis Inc. acquired all of the outstanding common stock of Bork Inc. paying $7,400,000 cash. The book values and fair values of Willis' assets and liabilities are listed below:
• Book Value Fair Value
• Accounts Receivable 1,080,000 975,000
• Inventories 1,620,000 2,400,000
• Property, Plant and equipment 5,400,000 6,975,000
• Accounts Payable 1,800,000 1,800,000
• Bonds Payable 2,700,000 2,475,000
Required:
Prepare the journal entry to record the acquisition by Willis Inc.
