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Avery Company acquired the net assets of lowa Company on June 1, 20X1. The net assets acquired include plant assets that are provisionally estimated to

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Avery Company acquired the net assets of lowa Company on June 1, 20X1. The net assets acquired include plant assets that are provisionally estimated to have a fair value of $380,000 with a 10-year usable life and no salvage value and buildings that are provisionally estimated to have a fair value of $162,000 with a 15-year usable life and salvage value of $18,000. Depreciation is recorded based on months in service. The remaining unallocated amount of the price paid is $62,300, which is recorded as goodwill. At the end of December 20X1, Avery prepared the following statements includes Iowa Company for the last seven months): Balance Sheet Current Assets........................ $300,000 Equipment (net)..................... 600,000 Plant assets (net)..................... 1,194,700 Buildings 643,000 Good will. 62,300 Total assets................. $2.800.000 Current liabilities....................$ 300,000 Bonds payable........................ 500,000 Common stock ($1 par............ 50,000 Paid-in Capital in excess of par.....1,300,000 Retained earnings.................. 650.000 Total liabilities and equity........ $2.800.000 Summary Income Statement $800,000 340,000 $460,000 Sales revenue................. Cost of goods sold............ Gross profit......................................... Operating expenses.............. Depreciation expense........ Net Income.. ............. $240,000 145,000 385,000 S 75.000 In March 20X2, the final estimated fair value of the acquired plant assets is $320,000 with no change in the estimate of useful life or salvage value. The final estimated fair value of the acquired buildings is $230,400 with no change in the estimate of useful life or salvage value. 1. Prepare any journal entries required in March 20X2. 2. Prepare the revised balance sheet and income statement for 20X1 that will be included in the 20X2 comparative statements

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