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using this information do value and prepare the entry to record the acquisitions of the net assets of Heinrich Company on the books of P&F

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using this information do value and prepare the entry to record the acquisitions of the net assets of Heinrich Company on the books of P&F International.
x Problem 1-8 (LO 3, Cash acquisition with a gain. Heinrich Company, owned by Elennor and Al Heinrich, has been experiencing financial difficulty for the past several years. Both Elennor and Al have not been in good health and have decided to find a buyer. P&F Inter- national , after reviewing the financial statements for the previous three years, has decided to make an offer of $150,000 for the net assets of Heinrich Company on January 1, 2016. The balance sheet as of this date is as follows: Heinrich Company Balance Sheet January 1, 2016 Current assets: Current liabilities: Accounts receivable $ 87,000 Accounts payable Inventory 36,000 Accrued liabilities Other current assets 14,000 Total current assets $137,000 Total current liabilities Fixed assets: Other liabilities: Equipment $105,000 Notes payable Vehicles 69,000 Total fixed assets $174,000 Total liabilities Intangibles: Stockholders' equity: $ 4,000 Common stock Paid in capital in excess of por Retained earnings Total equity Total assets $315,000 Total liabilities and equity $ 56,000 14,000 $ 70,000 $ 30,000 $100,000 Mailing lists $ 60,000 100,000 65,000 $215,000 $315.000 In reviewing the above balance sheet, P&F's appraiser felt the liabilities were stated at their fair values. He placed the following fair values on the assets of the company. Heinrich Company Fair Values January 1, 2016 $ 90,000 30,000 8,000 $120,000 Current assets: Accounts receivable Inventory Other current assets Total current assets Fixed assets: Equipment Vehicles Total fixed assets Intangibles: Mailing list Total assets. $ 80,000 50,000 $130,000 $ 10,000 $268,000

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