In 2007 Clearly Canadian Beverage Corporation acquired My Organic Baby Inc. (MOB), a leading Canadian producer of

Question:

In 2007 Clearly Canadian Beverage Corporation acquired My Organic Baby Inc. (MOB), a leading Canadian producer of organic baby food. The total purchase price was $4,913,000, consisting of $369,000 in cash, and new no-par common stock with a market value of $4,544,000. The fair values of MOB's acquired assets and liabilities are as follows (in thousands):

Net assets reported on MOB's books

Cash and receivables................................................................................................. $466

Inventory..................................................................................................................... 142

Plant and equipment................................................................................................... 21

Other tangible assets.................................................................................................. 131

Accounts payable....................................................................................................... 686

Identifiable intangible assets not reported on MOB's books

Distribution relationships.......................................................................................... 715

Trademarks, copyrights and brands......................................................................... 834

Other intangible assets............................................................................................... 1,961

Required

Assuming Clearly Canadian records this acquisition as a statutory merger, prepare the journal entry it made in 2007 to record its acquisition of My Organic Baby, Inc.

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...