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please explain Accounting II Practice Exam Questions, Chapter 10 X company acquired all of the assets of Y company for $390,000. At the time of
please explain Accounting II Practice Exam Questions, Chapter 10 X company acquired all of the assets of Y company for $390,000. At the time of the acquisition, the book value and fair value of Y's assets and liabilities were: Book Value Fair Value Current Assets Other Assets Current Liabilities Bonds Payable 200,000 120,000 100,000 50,000 250,000 200,000 100,000 55,000 The journal entry to record the purchase would include which of the following? A. a debit to Goodwill of 95,000 B. a debit to Current Assets of 200,000 C. a debit to Other Assets of 120,000 D. a debit to Goodwill of 220,000
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