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During the current year, Broncos Company acquired all of the outstanding common stock of Denver Inc. paying $12,000,000 cash. The book values and fair values
During the current year, Broncos Company acquired all of the outstanding common stock of Denver Inc. paying $12,000,000 cash. The book values and fair values of Denver's assets and liabilities acquired are listed below:
| Book Value | Fair Value |
Accounts receivable | $1,800,000 | $ 1,625,000 |
Inventories | 2,700,000 | 4,000,000 |
Property, plant, and equipment | 9,000,000 | 11,625,000 |
Accounts payable | 3,000,000 | 3,000,000 |
Bonds payable | 4,500,000 | 4,125,000 |
Prepare the journal entry to record the acquisition by Broncos Company.
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