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Assume that Boriz Johnson Ltd is acquiring a portable building from Scot Norrison Ltd for the following consideration: . Cash $160,000; Boriz Johnson Ltd is
Assume that Boriz Johnson Ltd is acquiring a portable building from Scot Norrison Ltd for the following consideration: . Cash $160,000; Boriz Johnson Ltd is going to transfer some rural land to Scot Norrison Ltd (carrying amount of $120,000; fair value $95,000); Boriz Johnson Ltd has agreed to take legal responsibility for Scot Norrison Ltd.'s bank loan of $65,000; 100,000 shares with a market value per share of $1.90; Pertaining to the acquisition, $9,000 will be paid one month later. Required: Determine the acquisition cost of the asset and provide the required journal entries for Boriz Johnson Ltd
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