Goodwill and Bargain Purchase Gamma Corporation paid $5,000,000 in cash for all of Delta Inc. 's
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Question:
Goodwill and Bargain Purchase Gamma Corporation paid $5,000,000 in cash for all of Delta 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 | $1,200,000 |
Plant assets | $1,800,000 |
Identifiable intangible assets | $1,600,000 |
Liabilities | $(2,200,000) |
Fair value of identifiable net assets | $2,400,000 |
Required: In each of the above cases, prepare the journal entry Gamma makes to record the acquisition.
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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