Goodwill and Bargain Purchase

Panda Corporation paid $$2,000,000$ in cash for all of Sim Corporation$$s assets and liabilities in a merger. The following table shows three possible cases for the merger:

Fair Value

Account Case $1$ Case $2$ Case $3$

Current assets $$400,000$ $$100,000$ $$300,000$

Plant assets $750,000300,0002,000,000$

Identifiable intangible assets $900,000200,000800,000$

Liabilities $(800,000)(900,000)(1,000,000)$

Fair value of identifiable net assets $$1,250,000$ $$(300,000)$ $$2,100,000$

Required

In each of the above cases, prepare the journal entry Panda makes to record the business combination.

Instructions:

Not all drop$-$down answers may be required for the journal entry in each case. If an account is not required, select $"$N$/$A$"$ as your answer.

Enter answers using all zeros $($do not abbreviate to thousands$).$

Case $1$:

General Journal

Description Debit Credit

Current assets

Plant assets

Identifiableintangibles

$?$

Liabilities

Cash

$?$

Case $2$:

General Journal

Description Debit Credit

Current assets

Plant assets

Identifiableintangibles

$?$

Liabilities

Cash

$?$

Case $3$:

General Journal

Description Debit Credit

Current assets

Plant assets

Identifiableintangibles

$?$

Liabilities

Cash

$?$