Question
Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2015, and subsequently formally dissolves Deluxe. At the acquisition date,
Allerton Company acquires all of Deluxe Companys 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: Book Values Fair Values Current assets $ 52,500 $ 52,500 Building 90,750 47,050 Land 16,500 31,100 Trademark 0 34,800 Goodwill 16,500 ? Liabilities (41,250) (41,250) Common stock (100,000) Retained earnings (35,000) Prepare Allertons entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (1) $150,000.Record the aquisiton methds entry for the merger with delux company. 2. 102,000 Record the aquistion entry for bargin purchase under the aqusition method with delux company.
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