Question

Lower Ltd. acquired the assets and liabilities of Audet Ltd. on July 1, 2013. These net assets measured at fair value consisted of:
Equipment............ $ 50,000
Land .............. 80,000
Trucks .............. 40,000
Current assets............ 10,000
Current liabilities.......... (16,000)
Required
Prepare the journal entries in Lower to record this business combination assuming that, to acquire these net assets,
Lower:
(a) Issued 100,000 shares at $1.80 per share
(b) Issued 100,000 shares at $1.60 per share.


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  • CreatedJune 09, 2015
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