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
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
llerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2018,...
llerton 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
$
46,750
$
46,750
Building
100,750
57,850
Land
15,750
35,350
Trademark
0
38,000
Goodwill
23,000
?
Liabilities
(51,250
)
(51,250
)
Common stock
(100,000
)
Retained earnings
(35,000
)
1&2. Prepare Allerton’s entry to record its...
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
$
20,250
$
20,250
Building
110,250
65,150
Land
17,250
28,550
Trademark
0
34,600
Goodwill
37,500
?
Liabilities
(50,250
)
(50,250
)
Common stock
(100,000
)
Retained earnings
(35,000
)
1&2. Prepare Allerton’s entry to record its...
In a pre-2009 business combination, Acme Company acquired all of Brem Company’s assets and liabilities for...
In a pre-2009 business combination, Acme Company acquired all of
Brem Company’s assets and liabilities for cash. After the
combination Acme formally dissolved Brem. At the acquisition date,
the following book and fair values were available for the Brem
Company accounts:
Book Values
Fair Values
Current assets
$
81,800
$
81,800
Equipment
131,000
198,000
Trademark
0
352,000
Liabilities
(67,800
)
(67,800
)
Common stock
(100,000
)
Retained earnings
(45,000
)
In addition, Acme paid an investment bank $31,200 cash for...
On January 1, 2011, Petron Corporation acquires the net assets of the Shell Corporation for P625,000...
On January 1, 2011, Petron Corporation acquires the net assets
of the Shell Corporation for P625,000 cash. Prior to the business
combination, Shell Corporation has the following statement of
financial position:
Shell Corporation
Statement of Financial Position
January 1, 2011
Assets
Liabilities and Equity
Current assets:
Current Liabilities
P 62,500
Accounts Receivable
P150,000
Shareholders’ equity:
Inventories
125,000
P275,000
Ordinary Share
Property, Plant, and
Capital, P10
par
P250,000
Equipment
350,000
Accumulated Profits
312,500
562,500
Total...
1. Dr. Pepper Snapple Group (DPSG) acquired the assets and liabilities of Turquoise Water Inc. on...
1. Dr. Pepper Snapple Group (DPSG) acquired the assets and
liabilities of Turquoise Water Inc. on September 30, 2018, in a
merger. The acquisition involves the following payments:
Cash paid to Turquoise Water
shareholders
$85,000,000
Cash paid to Morgan Stanley for
consulting services
12,000,000
New stock issued, 100,000 shares,
$0.50 par, fair value at acquisition
5,000,000
Stock registration fees, paid in cash
600,000
Earnings contingency, to be paid in
three years, present value
2,000,000
Turquoise...
20. Big Ltd acquired all the assets and liabilities of Small Ltd on 1 July 2019....
20. Big Ltd acquired all the assets and liabilities of Small Ltd
on 1 July 2019. At this date, the assets and liabilities of Rod Ltd
consisted of the following:
Carrying Amount ($)
Fair Value($)
Assets
Cash
250,000
600,000
Accounts receivable
450,000
500,000
Land
200,000
300,000
Vehicle
100,000
200,000
Accumulated depreciation -Vehicle
(20,000)
Liabilities
Accounts payable
150,000
150,000
Loans
200,000
200,000
Equity
Share Capital –@$6 per share
600,000
Reserves
30,000
In exchange for these assets and liabilities, Big Ltd...
Parkland buys all of Sander Company’s assets and liabilities. Sander’ balance sheet at the date of...
Parkland buys all of Sander Company’s assets and liabilities.
Sander’ balance sheet at the date of acquisition, including fair
value information on its reported assets and liabilities, is as
follows:
Book Value
Dr (Cr)
Fair Value
Dr (Cr)
Assets
Cash, receivables
$ 1,000,000
$ 950,000
Inventories
5,000,000
4,000,000
Property and equipment
60,000,000
45,000,000
Total assets
$ 66,000,000
Liabilities &
Equity
Accounts and notes payable
$ 30,000,000
29,000,000
Common stock
500,000
Additional paid-in capital
15,000,000
Retained earnings
20,500,000
Total liabilities and...
Pham Company acquired the assets (except for cash) and assumed the liabilities of Senn Company on...
Pham Company acquired the assets (except for cash) and assumed
the liabilities of Senn Company on January 1, 2019, paying $720,000
cash. Senn Company's December 31, 2018, balance sheet, reflecting
both book values and fair values, showed:
Book Value
Fair Value
Accounts receivable (net)
$ 72,000
$ 65,000
Inventory
86,000
99,000
Land
110,000
162,000
Buildings (net)
369,000
450,000
Equipment (net)
237,000
288,000
Total
$874,000
$1,064,000
Accounts payable
$ 83,000
$ 83,000
Note payable
180,000
180,000
Common stock, $2 par value...
A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase...
A parent company acquires all of the outstanding common stock of
its subsidiary for cash purchase price of $325,000. On the
acquisition date, the subsidiary reported a book value of
Stockholders’ Equity of $120,000, comprised of $50,000 of Common
Stock and $70,000 of Retained Earnings. An examination of the
subsidiary’s balance sheet revealed that book values were equal to
fair value for all assets, expect for an unrecorded patent, which
the parent valued at $160,000 during the acquisition.
a. What did...
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,797,600 in cash consideration....
On January 1, 2021, Ackerman Company acquires 80% of Seidel
Company for $1,797,600 in cash consideration. The remaining 20
percent noncontrolling interest shares had an acquisition-date
estimated fair value of $449,400. Seidel’s acquisition-date total
book value was $1,785,000.
The fair value of Seidel’s recorded assets and liabilities
equaled their carrying amounts. However, Seidel had two unrecorded
assets—a trademark with an indefinite life and estimated fair value
of $257,250 and several customer relationships estimated to be
worth $189,000 with four-year remaining...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 1 minute ago
asked 8 minutes ago
asked 24 minutes ago
asked 36 minutes ago
asked 36 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago