On January 1, July 1, and December 31, 2016, a Condensed

Essay

On January 1, July 1, and December 31, 2016, a condensed trial balance for Nelson Company showed the following debits and (credits):
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$\begin{array}{lrrr}& 01 / 01 / 16 & 07 / 01 / 16 & 12 / 31 / 16 \\\text { Current Assets } & \$ 200,000 & \$ 260,000 & \$ 340,000 \\\text { Plant and Equipment (net) } & 500,000 & 510,000 & 510,000 \\\text { Current Liabilities } & (50,000) & (70,000) & (60,000) \\\text { Long-Term Debt } & (100,000) & (100,000) & (100,000) \\\text { Common Stock } & (150,000) & (150,000) & (150,000) \\\text { Other Paid-in Capital } & (100,000) & (100,000) & (100,000) \\\text { Retained Earnings, January 1 } & (300,000) & (300,000) & (300,000) \\\text { Dividends Declared } & & & 10,000 \\\text { Revenues } & & (400,000) & (900,000) \\\text { Expenses } & & 350,000 & 750,000\end{array}$
Assume that, on July 1, 2016, Systems Corporation purchased the net assets of Nelson Company for $750,000 in cash.On this date, the fair values for certain net assets were:
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$$\begin{array} { l r } \text { Current Assets } & \$ 280,000 \\\text { Plant and Equipment (remaining life of } 10 \text { years) } & 600,000\end{array}$$ Nelson Company's books were NOT closed on June 30, 2016.
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For all of 2016, Systems' revenues and expenses were $1,500,000 and $1,200,000, respectively.
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Required:
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$$\text { (1) Record the entry on Systems' books for the July 1, } 2016 \text { purchase of Nelson. }$$