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Pritano Company acquired all the net assets of Succo Company on December 31,2013 , for $2,305,280 cash. The balance sheet of Succo Company immediately prior
Pritano Company acquired all the net assets of Succo Company on December 31,2013 , for $2,305,280 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: As part of the negotiations, Pritano Company agreed to issue 9,600 additional shares of its $10 par value common stock to the stockholders of Succo if the average postcombination earnings over the next three years equaled or exceeded $2.606,100. The fair value of the contingent consideration on the date of acquisition was estimated to be $217,200. The contingent consideration (earnout) was classified as equity rather than as a liability. Prepare the journal entries on the books of Pritano to record the acquisition on December 31, 2013. (If no entry is required, select "No Entry" for the account tltles and enter 0 for the amounts. Credit occount tities are outomatically indented when the omount is entered. Do not indent manually.)
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