Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date,

Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2018, 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 $ 51,500 $ 51,500
Building 92,750 44,250
Land 27,000 43,000
Trademark 0 39,000
Goodwill 21,000 ?
Liabilities (57,250 ) (57,250 )
Common stock (100,000 )
Retained earnings (35,000 )

1&2. Prepare Allertons entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $157,000 and $92,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

(1-record the acquisition of delex assuming the cash exchange of 157,000). (2-record the acquisition of delex assuming the cash exchange of 92,000)

general journal....debit...credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image

Step: 3

blur-text-image

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

Governmental Accounting Auditing And Financial Reporting

Authors: Stephen J. Gauthier

1st Edition

0891252754, 978-0891252757

More Books

Students also viewed these Accounting questions