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Problem 4 (20 points) A Company purchases another Company for $500,000. They receive the following assets: Cash $150,000 Accounts Receivable $50,000 Inventory $165,000 Equipment
Problem 4 (20 points) A Company purchases another Company for $500,000. They receive the following assets: Cash $150,000 Accounts Receivable $50,000 Inventory $165,000 Equipment $140,000 Patents $20,000 Liabilities $75,000 Note: All of the assets are shown at the fair market value. Prepare the entry to record the purchase. Account Title Debit Credit
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