Goodwill and Bargain Purchase Alpha Corporation paid $1,500,000 in cash for all of Beta Inc. 's
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Question:
Goodwill and Bargain Purchase Alpha Corporation paid $1,500,000 in cash for all of Beta Inc.'s assets and liabilities in a merger. The following table shows three possible cases for the merger:
Account | Fair Value |
Case 1 | |
Current assets | $500,000 |
Plant assets | $1,000,000 |
Identifiable intangible assets | $900,000 |
Liabilities | $(1,200,000) |
Fair value of identifiable net assets | $1,200,000 |
Required: In each of the above cases, prepare the journal entry Alpha makes to record the acquisition.
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