Goodwill Recognition
Spur Corporation reported the following balance sheet amounts on December 31, 20X1:
|
Balance Sheet Item
|
Historical Cost
|
Fair Value
|
|
Cash & Receivables
|
$ 50,000
|
$ 40,000
|
|
Inventory
|
100,000
|
150,000
|
|
Land
|
40,000
|
30,000
|
|
Plant & Equipment
|
400,000
|
350,000
|
|
Less: Accumulated Depreciation
|
(150,000)
|
|
|
Patent
|
|
130,000
|
|
Total Assets
|
$440,000
|
$700,000
|
|
Accounts Payable
|
$ 80,000
|
$ 85,000
|
|
Common Stock
|
200,000
|
|
|
Additional Paid-In Capital
|
20,000
|
|
|
Retained Earnings
|
140,000
|
|
|
Total Liabilities & Equities
|
$440,000
|
|
Required
Blanket acquired Spur Corporation's assets and liabilities for $670,000 cash on December 31, 20X1. Give the entry that Blanket made to record the purchase.