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On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a par value of $100,000 and a

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On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a par value of $100,000 and a fair value of $800,000, Brown also paid $10,000 in direct acquisition costs and $15,000 in stock issuance costs. On this date, Larson's condensed account balances showed the following: Book Value Fair Value Current Assets $280,000 $370,000 Plant and Equipment 440,000 480,000 Accumulated Depreciation (100,000) Intangibles - Patents 80,000 120.000 Current Liabilities (140,000) (140,000) Long-Term Debt (100,000) (110,000) Common Stock (200,000) Other Paid-in Capital (120,000) Retained Earnings (140,000) Required: Record Brown's purchase of Larson Company's net assets

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