Recording a Business Combination Petra Corporation paid $8 million in cash to acquire the assets and liabilities of Salisbury Company. Petra also agreed to make an additional cash payment in the future, with an expected present value of $500,000, if certain performance targets are met. Petra paid legal and consulting fees of $150,000 in cash in connection with the merger. A comparison of book and fair values of Salisbury's assets and liabilities follows: (in thousands) Current assets Property and equipment, net Patents and trademarks Current liabilities Long-term debt Net assets Book Value Fair Value $ 400 $350 4,600 1,000 800 1,200 (600) (600) (2,900) (3,000) $2,300 $(1,050) Salisbury also has previously unreported developed technology, valued at $1.5 million, that meets ASC Topic 805 criteria for capitalization. Required Prepare the journal entry or entries made by Petra to record the business combination as a merger. Enter answers using all zeros - do not abbreviate into thousands as shown above table. Description Debit Credit Current assets Plant and equipment Patents and trademarks Identifiable intangible: developed technology Merger expenses Current liabilities Long-term debt Cash = 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2022-10...

Recording a Business Combination erequinet