On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common...
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On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a par value of $100,000 and a fair value of $800,000. Brown also paid $10,000 in direct acquisition costs and $15,000 in stock issuance costs. On this date, Larson's condensed account balances showed the following: Current Assets Plant and Equipment Accumulated Depreciation Intangibles - Patents Current Liabilities Long-Term Debt Common Stock Other Paid-in Capital Retained Earnings Required: Record Brown's purchase of Larson Company's net assets. Book Value $280,000 440,000 (100,000) 80,000 (140,000) (100,000) (200,000) (120,000) (140,000) Fair Value $370.000 480,000 120,000 (140,000) (110,000) On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a par value of $100,000 and a fair value of $800,000. Brown also paid $10,000 in direct acquisition costs and $15,000 in stock issuance costs. On this date, Larson's condensed account balances showed the following: Current Assets Plant and Equipment Accumulated Depreciation Intangibles - Patents Current Liabilities Long-Term Debt Common Stock Other Paid-in Capital Retained Earnings Required: Record Brown's purchase of Larson Company's net assets. Book Value $280,000 440,000 (100,000) 80,000 (140,000) (100,000) (200,000) (120,000) (140,000) Fair Value $370.000 480,000 120,000 (140,000) (110,000)
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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