Parrott Corporation Acquires All of the Assets and Liabilities of Swann

Parrott Corporation acquires all of the assets and liabilities of Swann Company. The fair values of Swann's reported assets and liabilities are estimated to be as follows at the date of acquisition:
$\begin{array}{lr}&\text { Fair Value}\\&\text { Dr (Cr)}\\\text { Current assets } & \$ 400 \\\text { Plant \& equipment } & 1,500 \\\text { Liabilities } & \{1,200\}\end{array}$ Parrott determines that Swann has not recorded the following intangible assets on its books. These intangible assets are appropriately reported by Parrott on acquisition.
$\begin{array}{lcc} & \text { Fair Value } \\\text { Completed technology } & \$ 600 \\\text { Favorable leases } & 100\end{array}$ Required a. Assume Parrott pays $1,400 in cash to acquire all of Swann's assets and liabilities. Prepare the journal entry Parrott makes to record the acquisition.
b. Now assume Parrott pays $5,000 in cash to acquire all of Swann's assets and liabilities. Prepare the journal entry Parrott makes to record the acquisition.