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b Fowler Manufacturing Company decided to expand turther by purchasing Abel Company. The balance sheet of Abel Company as of December 31, 2007 was as
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Fowler Manufacturing Company decided to expand turther by purchasing Abel Company. The balance sheet of Abel Company as of December 31, 2007 was as follows Abel Company, Balance Sheet December 31, 2007 Assets Liabases & Equity Cash $210.000 Accounts payable Receivables $450,000 Common stock Inventory $275,000 Retained earnings Property, plant & equipment $1.025.000 Total Assets 51.960,000 Total Llabilities & Equity $325,000 $800.000 3835.000 $1.960,000 An appraisal, agreed to by the parties, indicated that the fair market value of the inventory was 5425.000 and that the fair market value of the plant assets was $1,175,000. The fair market values of all other assets and abilities are equal to the amounts reported on the balance sheet The agreed purchase price was $2.400.000, and this amount was paid in cash to the previous owners of Abel Company Determine the amount of goodwill if any), and show the journal entry that Fowler Manufacturing Company would post to record the transaction Step by Step Solution
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