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On 11/1/17, Alpha Inc. buys Beta Inc. for $100,000. The book value and fair value of Beta's assets and liabilities are reported below. Book values
On 11/1/17, Alpha Inc. buys Beta Inc. for $100,000. The book value and fair value of Beta's assets and liabilities are reported below. Book values Fairvalues Intangible assets Receivables Inventory PPE Other assets Total Assets $35,000 $ 20,000 $ 40,000 $200,000 $5,000 $300,000 $60,000 $20,000 $50,000 $200,000 $5,000 $335,000 Current liabilities $90,000 $90,000 Long term liabilities $150,000 $150,000 Total Liabilities $240,000 $240,000 QUESTION: Which of the following statements are correct about the journal entries recorded by Alpha? (select all that apply - i.e., just one or as many as all of them) A loss will be debited for $5,000 Goodwill will be debited for $5,000 ( After Alpha has recorded the necessary journal entries, Alpha's liabilities will have increased by $240,000 Goodwill will be debited for $40,000 After Alpha has recorded the necessary journal entries, Alpha's NET assets will have increased by $5,000. If the purchase price was $90,000 instead of $100,000, a Gain would be credited Alpha will not credit any asset account
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