Question
Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2018,...
Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:
| Book Values |
Fair Values |
||||||
| Current assets | $ | 51,500 | $ | 51,500 | |||
| Building | 92,750 | 44,250 | |||||
| Land | 27,000 | 43,000 | |||||
| Trademark | 0 | 39,000 | |||||
| Goodwill | 21,000 | ? | |||||
| Liabilities | (57,250 | ) | (57,250 | ) | |||
| Common stock | (100,000 | ) | |||||
| Retained earnings | (35,000 | ) | |||||
1&2. Prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $157,000 and $92,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
(1-record the acquisition of delex assuming the cash exchange of 157,000). (2-record the acquisition of delex assuming the cash exchange of 92,000)
general journal....debit...credit
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