Born Corporation agrees to acquire the net assets of Wren Corporation on January 1, 2015.Wren has the

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Born Corporation agrees to acquire the net assets of Wren Corporation on January 1, 2015.Wren has the following balance sheet on the date of acquisition:

Born Corporation agrees to acquire the net assets of Wren

An appraiser determines that in-process R&D exists and has an estimated value of $20,000. The appraisal indicates that the following assets have fair values that differ from their book values:
Fair Value
Inventory...........................................$ 98,000
Equipment..........................................340,000
Trademark............................................30,000
Required
Use value analysis to prepare the entry on the books of Born Corporation to acquire the net assets of Wren Corporation under each of the following purchase price scenarios:
1. Purchase price is $540,000.
2. Purchase price is $350,000.

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Advanced Accounting

ISBN: 978-1305084858

12th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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