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In a pre-2009 business combination, Acme Company acquired all of Brem Company's assets and liabilities for cash. After the combination, Acme formally dissolved Brem. At

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In a pre-2009 business combination, Acme Company acquired all of Brem Company's assets and liabilities for cash. After the combination, Acme formally dissolved Brem. At the acquisition date, the following book and fair values were available for the Brem Company accounts: Current assets Equipment Trademark Liabilities Common stock Retained earnings Book Values Fair Values $ 88,400 $ 88,400 131,000 198,000 @ 352,000 (74,400) (74,400) (100,000) (45,000) In addition, Acme paid an investment bank $29,200 cash for assistance in arranging the combination a. Using the legacy purchase method for pre-2009 business combinations, prepare Acme's entry to record its acquisition of Brem in its accounting records assuming the following cash amounts of $668,400 and $457,400 were paid to the former owners of Brem. b. How would these journal entries change if the acquisition occurred post-2009 and therefore Acme applied the acquisition method? (if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) Answer is not complete. General Journal No Transaction Credit 1 1 Current Assets Equipment Trademark Goodwill lololololo Debit 88.400 198,000 352,000 133,600 Liabilities Cash 74.400 597,600 88,400 2 2 Current Assets 2 2. 88,400 Current Assets Equipment Trademark Liabilities Cash OC OOOOO 198,000 352.000 457,400 88.400 3 3 No journal entry required 9 4 4 Current Assets Equipment Trademark Goodwill Liabilities Cash OOOOOO 884,000 198,000 352,000 744,000 726.800 5 5 Professional services expense Cash 29,200 29,200 6 6 Current Assets Equipment Trademark Liabilities Gain on bargain purchase Cash OOOOOO 88,400 188,000 352,000 74.400 106,500 457,400 7 7 Professional services expense Cash 29,200 29,200

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