On January 1, 2016, Zebb and Nottle Companies had condensed balance sheets as shown below: Zebb Company $1,000,000 1,500,000 $2,500,000 Current Assets Plant and Equipment Current Liabilities Long-Term Debt Common Stock, $10 par Paid-in Capital in Excess of Par Retained Earnings $ 200,000 300,000 1,400,000 0 600,000 $2,500,000 Nottle Company $ 600,000 800,000 $1,400,000 $ 100,000 300,000 400,000 100,000 500,000 $1,400,000 Required: Record the acquisition of Nottle's net assets, the issuance of the stock and/or payment of cash, and payment of the related costs. Assume that Zebb issued 30,000 shares of new common stock with a fair value of $25 per share and paid $500,000 cash for all of the net assets of Nottle. Acquisition costs of $50,000 and stock issuance costs of $20,000 were paid in cash. Current assets had a fair value of $650,000, plant and equipment had a fair value of $900,000, and long-term debt had a fair value of $330,000.

Alabama State University College of Business Administration ACT 512 Advanced Financial Reporting Exam I June 13,2023 On January 1, 2016, Zebb and Nottle Companies had condensed balance sheets as shown below: Kequired: Record the acquisition of Nottle's net assets, the issuance of the stock and/or payment of cash, and payment of the related costs. Assume that Zebb issued 30,000 shares of new common stock with a fair value of $25 per share and paid $500,000 cash for all of the net assets of Nottle. Acquisition costs of $50,000 and stock issuance costs of $20,000 were paid in cash. Current assets had a fair value of $650,000, plant and equipment had a fair value of $900,000, and long-term debt had a fair value of $330,000