Problem 2-35 (LO 2-9) In a pre-2009 business combination, Acme Company acquired all of Brem Company's assets and liabilities for cash. After the combination Acme formally dissolved Brem. At the acquisition date, the following book and fair values were available for the Brem Company accounts: Book Values $ 68,400 148,000 Current assets Equipment Trademark Liabilities Common stock Retained earnings Fair Values $ 68,400 226,000 339,000 (71,400) (71,400) (100,000) (45,000) In addition, Acme paid an investment bank $28,700 cash for assistance in arranging the combination. a. Using the legacy purchase method for pre-2009 business combinations, prepare Acme's entry to record its acquisition of Brem in its accounting records assuming the following cash amounts of $674,100 and $444,100 were paid to the former owners of Brem. b. How would these journal entries change if the acquisition occurred post-2009 and therefore Acme applied the acquisition method? Journal entry worksheet 2 3 4 5 6 Record the acquisition of Brem using the purchase method assuming $674,100 was paid to the former owners of Brem Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet