Question
On July 1, 2020, Concord Corporation purchased Young Company by paying $258,200 cash and issuing a $141,000 note payable to Steve Young. At July 1,
On July 1, 2020, Concord Corporation purchased Young Company by paying $258,200 cash and issuing a $141,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.
| Cash | | $50,600 | | Accounts payable | | $207,000 |
|---|---|---|---|---|---|---|
| Accounts receivable | | 91,800 | | Stockholders’ equity | | 244,600 |
| Inventory | | 109,000 | | | | $451,600 |
| Land | | 41,700 | | | | |
| Buildings (net) | | 75,600 | | | | |
| Equipment (net) | | 70,900 | | | | |
| Trademarks | | 12,000 | | | | |
| | | $451,600 | | | | |
The recorded amounts all approximate current values except for land (fair value of $60,500), inventory (fair value of $126,400), and trademarks (fair value of $17,360).
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a July 1entry for Concord Corporation to record ...
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
