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.