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On 1 2 / 3 1 / 2 0 2 3 , P , Inc. paid $ 4 9 5 , 0 0 0 cash
On P Inc. paid $ cash to acquire of the outstanding voting common stock of AI
Software Company.
At the acquisition date, AI Software's net assets equaled their recorded values, except:
Computer software fair value $
Equipment fair value $
Unrecorded client contracts had a fair value $ and
Unrecorded inprocess R&D had a fair value $
Note : See the accompanying Excel worksheet for P Inc. and AI Softwares preacquisition trial balances that
must be used for this problem and a schedule, Table A which details the recorded values and fair values discussed
above.
Required
Prepare a schedule showing the allocation of s acquisition price to AI Software's net assets acquired,
including goodwill, if applicable.
Assuming AI Software Company is dissolved at acquisition and its assets and liabilities are transferred to Prospector,
Inc., prepare the journal entry to record Prospector's acquisition of AI Software.
Assuming AI Software Company remains in business as a separate operating subsidiary of P Inc., prepare:
a A journal entry to record Ps acquisition of AI Software,
b The worksheet to consolidate P Inc., and AI Software Company as of the acquisition date,
I do not understand how to solve!!! Pls help.
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