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PROBLEM 4. The Turner Company acquired the Hanson Company for a cash price of $13,975,000. In addition, the Turner Company assumed all liabilities of the

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PROBLEM 4. The Turner Company acquired the Hanson Company for a cash price of $13,975,000. In addition, the Turner Company assumed all liabilities of the Hanson Company as part of the acquisition. The following are the fair market values of the assets and liabilities of the Hanson Company that were acquired: Property, Plant, and Equipment Unearned Revenue Patents Accounts Receivable Accounts Payable Inventories Interest Payable 4,823,000 4,476,000 6,513,000 1,536,000 2,720,000 1,510,000 3,670,000 REQUIRED: (1) Record the COMPLETE journal entry to recognize the acquisition of the Hanson Company by the Turner Company. (2) At the end of the second year after the acquisition, the fair value of the Goodwill has decreased by $1,670,000. Record the journal entry to recognize this decrease in value

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