Question - Pony acquired Spur Corporation's assets and liabilities for $500,000 cash on December 31, 2013. Spur dissolved on the date of the acquisition. Spur's balance sheet and related fair values are shown as of that date, below.
Book Value Fair Value
Cash $20,000 $20,000
Accounts Receivable 40,000 38,000
Land 45,000 50,000
Plant and Equipment-net 460,000 410,000
Franchise Agreement 0 160,000
Total Assets $565,000
Accounts Payable $70,000 $70,000
Other Liabilities 120,000 110,000
Common Stock 180,000
Additional Stock 40,000
Retained Earnings 155,000
Total liabilities & Equity $565,000
Required: Prepare the journal entry recorded by Pony as a result of this transaction.