Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2013, and
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_____________________________________Book Values _______ Fair Values
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000 ....................$ 60,000
Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 ..................... 50,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 ..................... 20,000
Trademark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -0- ....................... 30,000
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 ........................... ?
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (40,000) .................. (40,000)
Common stock . . . . . . . . . . . . . . . . . . . . . . . . (100,000)
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . (35,000)
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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Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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