Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2015, and

Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2015, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:

Prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts:
(1) $145,000.
(2)$110,000.

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Book Values Fair Values $60,000 60,000 50,000 20,000 30,000 Current assets Building Land . . . Trademark Goodwill Liabilities. Common stock Retained earnings 90,000 10,000 15,000 (40,000) (100,000) (35,000) (40,000)