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On January 1, 2017, DELL Corporation purchased the non-cash net assets of YVR Ltd. for $8,414,100. Following is the statement of financial position of YVR
On January 1, 2017, DELL Corporation purchased the non-cash net assets of YVR Ltd. for $8,414,100. Following is the statement of financial position of YVR Ltd. from the company's year-end the previous day:
As part of the negotiations, DELL and YVR agreed on the following fair values for the items on YVR's statement of financial position:
Accounts receivable | $554,400 | |
Inventory | 2,355,000 | |
Property, plant, and equipment | 1,875,000 | |
Land | 3,760,000 | |
Accounts payable | 229,300 |
Prepare the journal entry on the books of DELL Corporation to record the purchase of the net assets of YVR Ltd, assuming DELL paid cash for the net assets.
HERE ARE THE SAMPLE LIST OF ACCOUNTS TO USE:
YVR Ltd. Statement of Finanial Position As at December 31, 2016 $690,000 556,000 2,570,000 Cash Accounts receivable Inventory Property, plant, and equipment (net) Land 2,080,000 2,610,000 $8,506,00 Accounts payable Common shares Retained earnings $366,000 2,530,000 5,610,000 $8,506,00
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