On July 1, 2015, Brandon Corporation purchased Mills Company by paying €250,000 cash and issuing a €150,000 note payable. At July 1, 2015, the statement of financial position of Mills Company was as follows.

The recorded amounts all approximate current values except for land (fair value of €80,000), inventory (fair value of €125,000), and trademarks (fair value of €15,000).
Instructions

(a) Prepare the July 1 entry for Brandon Corporation to record the purchase.

(b) Prepare the December 31 entry for Brandon Corporation to record amortization of intangibles. The trademarks have an estimated useful life of 4 years with a residual value of €3,000.

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Buildings (net) 75,000 Equity 235,000 Equipment (net) 70,000 Accounts payable 200,000 Trademarks 10,000 435,000 Land 40,000 Inventory 100,000 Accounts receivable 90,000 Cash 50,000 435,000