Lower Ltd. acquired the assets and liabilities of Audet Ltd. on July 1, 2013. These net assets

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Lower Ltd. acquired the assets and liabilities of Audet Ltd. on July 1, 2013. These net assets measured at fair value consisted of:

Equipment............ $ 50,000

Land .............. 80,000

Trucks .............. 40,000

Current assets............ 10,000

Current liabilities.......... (16,000)

Required

Prepare the journal entries in Lower to record this business combination assuming that, to acquire these net assets,

Lower:

(a) Issued 100,000 shares at $1.80 per share

(b) Issued 100,000 shares at $1.60 per share.

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Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

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Question Posted: Jun 09, 2015 03:17 AM

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Lower Ltd. acquired the assets and liabilities of Audet Ltd. on July 1, 2013. These net assets

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a 100000 shares issued at 180 per share Consideration transferred Shares 100000 180 180000 Net fair ...View the full answer

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