Q1.

Sellco established a car dealership in a town. This dealership is popular as no other town nearby has a showroom. The owner of this dealership wanted to sell and retire. Purchaseco came forward to buy this dealership for a price of $380,000 On the date of sale the balance sheet of Sellco is as under:

Assets					Liabilities
Cash			64,400		Accounts Payable		106,300
Accounts Receivable			34,200		Loans Payable		249,600
Inventory			245,100		Income tax payable		12,100
Furniture			94,600		Salaries payable		6,800
Buildings			244,900		Retained earnings		308,400
			683,200				683,200

The fair market values of the assets and liabilities revealed the following:

Accounts Receivable 28,900 Inventory 214,300 Furniture 72,600 Buildings 366,800 Loans payable 255,300 Income tax payable 10,400

Please find out the goodwill / bargain purchase amount and also prepare the journal entry on the day of acquision