Question

Patel Company issued 100,000 shares of $1 par value common stock (market value of $6/share) for the net assets of Seely Company on January 1, 2011, in a statutory merger. Seely Company had the following assets, liabilities, and owners’ equity at that time:



Required:
Prepare the journal entry to record the assets acquired and liabilities assumed. Assume an income tax rate of40%.


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  • CreatedMarch 13, 2015
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