Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 14, 2022

A company acquires another company for $5 million. The fair value of the acquired companys identifiable assets was $4 million, and its liabilities were $1

A company acquires another company for $5 million. The fair value of the acquired company’s identifiable assets was $4 million, and its liabilities were $1 million. Using formal journal entry form journalize the above transaction.

Step by Step Solution

★★★★★

3.36 Rating (146 Votes )

There are 3 Steps involved in it

Step: 1

Solution The journal entry for the acquisition Account Title and Debi... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: Roger A. Arnold

12th edition

978-1305758674, 1305758676, 978-1285738321

More Books

Students also viewed these Accounting questions

Question

★★★★★

The account balances above have normal values The fair value of the CGU on this date was $421,000 Management also determined that its value in use was $431,000 and the costs to sell the CGU, should...

Answered: 1 week ago

Question

★★★★★

For balance sheet purposes, can the fair value of a derivative in a loss position be netted against the fair value of a derivative in a gain position?

Answered: 1 week ago

Question

★★★★★

The FASB required that companies report the fair value of their equity and debt securities on the balance sheet. The FASB describe fair value as a market exit price-an estimate of the price an entity...

Answered: 1 week ago

Question

★★★★★

Which step in the recruitment process involves attracting potential candidates to the organization? A. Selection B. Induction C. Job analysis D. Sourcing

Answered: 1 week ago

Question

★★★★★

Consider a point midway between the two large charged plates in Fig. 16.27. Compute the change in electric potential if from there you moved (a) 1.0 mm toward the positive plate, (b) 1.0 mm toward...

Answered: 1 week ago

Question

★★★★★

How do you account for the fact that management seemed to ignore the problem of crushed turbine blades in the past, but acted upon the suggestions now?

Answered: 1 week ago

Question

★★★★★

Define paraphrasing and reflecting.

Answered: 1 week ago

Question

★★★★★

The accounts in the ledger of Rapid Delivery Service contain the following balances on July 31, 2017. Instructions (a) Prepare a trial balance with the accounts arranged as illustrated in the...

Answered: 1 week ago

Question

★★★★★

Fimbrez Corporation has provided the following data concerning an investment project that it is considering: Click here to view Exhibit 11B-1 and Exhibit 11B-2. to determine the appropriate discount...

Answered: 1 week ago

Question

★★★★★

Let P = (0.7, 100, 15) be a risky prospect. State 2 could be thought of as the occurrence of an accident which imposes a financial loss of 15 (figures could be thousands of euros). An insurance...

Answered: 1 week ago

Question

★★★★★

Facebook, Inc. generates $2 in advertising revenue per user per month. If the company incurs $1,000,000 in fixed advertising costs per month and $0.50 in variable advertising costs per user, how many...

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Question

★★★★★

Your company intends to invest in FinTrans, a fintech company that facilitates convenient transfer of funds across borders. You will be able to influence FinTrans' product development so that your...

Answered: 1 week ago

Question

★★★★★

Last chance to redeem my terrible drawings! h d3 m dz The simplified image above depicts how water towers provide pressure to homes in the surrounding area. A tower maintains a reservoir of water at...

Answered: 1 week ago

Question

★★★★★

Question 1: (Suggested 250 words per section) 1.1 What items might Susan present to the GM regarding the value of a green program in addition to the potential for business such as CERES? 1.2 What...

Answered: 1 week ago

Question

★★★★★

In your personal circumstances at this point in time, which would you prefer - a defined benefits plan or a defined contributions plan? Explain

Answered: 1 week ago

Question

★★★★★

You are the audit senior of Makeshift Auditors. A group of trainees auditors under you need orientation and briefing on what is expected of them as they carry out their duties. Your first task is to...

Answered: 1 week ago

Question

★★★★★

H Corporation has a bond outstanding. It has a coupon rate of 8 percent and a $1000 par value. The bond has 6 years left to maturity but could be called after three years for $1000 plus a call...

Answered: 1 week ago

Question

★★★★★

Discuss the problems you see in comparing the GDPs of two countries, say, the United States and the Peoples Republic of China.

Answered: 1 week ago

Question

★★★★★

Explain how asymmetric information in a product market can lead to market failure.

Answered: 1 week ago

Question

★★★★★

Suppose that the economy is self-regulating, that the price level is 110, that the quantity demanded of Real GDP is $4 trillion, that the quantity supplied of Real GDP in the short run is $4.9...

Answered: 1 week ago

Question

★★★★★

The clarity test is an important issue in Exercise 3.11. The weather obviously can be somewhere between full sunshine and rain. Should you include an outcome like cloudy? Would it affect your...

Answered: 1 week ago

Question

★★★★★

Questions If you were the manager, which option would you select? Why? Explain the disparity between the results for the two options What assumptions did you make in your analysis? The operations...

Answered: 1 week ago

Question

★★★★★

The Columbia University Hospital wanted to know if it needed to have more than one operating room (OR) crew present during the night shift (11 p.m. to 7 a.m.)J4. If the probability that one crew is...

Answered: 1 week ago

Previous Question Next Question