Maplewood Corporation Purchased the Net Assets of West Corporation on January

Essay

Maplewood Corporation purchased the net assets of West Corporation on January 2, 2016 for $560,000 and also paid $20,000 in direct acquisition costs. West's balance sheet on January
1, 2016 was as follows: Fair values agree with book values except for inventory, land, and equipment, which have fair values of $400,000, $50,000 and $70,000, respectively. West has patent rights valued at $20,000.
Required:
A. Prepare Maplewood's general journal entry for the cash purchase of West's net assets.
B. Assume Maplewood Corporation purchased the net assets of West Corporation for $500,000 rather than $560,000, prepare the general journal entry.