Accounting for the Acquisition of an Entire CompanyJames Company purchased Thomas Manufacturing for $1,000,000 cash on January 1.The book value and fair value of the assets of Thomas as of the date of the acquisition follow:BookFairValueValueCash$ 10,000$ 10,000Accounts receivable100,000100,000Inventory200,000300,000Patent050,000Property, plant, and equipment400,000600,000Totals$710,000$1,060,000In addition, Thomas had liabilities totaling $400,000 at the time of the acquisition. Thomas has no other separately identifiable intangible assets. Make the journal entry necessary on the books of James Company to record the acquisition.
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