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Need help solving this. OXY Company acquires all of GEN Company's assets and liabilities on January 1, 2019. OXY buys GEN with 20% of the
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OXY Company acquires all of GEN Company's assets and liabilities on January 1, 2019. OXY buys GEN with 20% of the purchase price in cash and 80% by issuing its own stock, par value $10, fair value $51. Right after the acquisition, OXY dissolves GEN. On January 1, 2019, the following book and fair values were available for the GEN accounts: Book Value Fair Value Current assets 162,000 162,000 Equipment 65,000 35,000 Building 125,000 455,000 Trademark 0 47,000 Goodwill 25,000 ? Liabilities (75,000) (75,000) Common stock (20,000) Retained earnings (282,000) Prepare OXY's journal entry to record its acquisition of GEN, assuming the following purchase prices: a.) $510,000 (14 points] b.) $765,000 (12 points)Step by Step Solution
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