1. Johnson, Incorporated acquired 90 percent of Nemec Enterprises on November 1, 20x5. As of that date, Nemec had inventory with a market value of 60,000 greater than the book value and long-term debt with a market value of 15,000 less than the book value. The inventory has a remaining life of six months and the long-term debt matures in five years.
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3. What is the amount of the purchase differential amortization that is recognized in the elimination sheet number 3 in 20x6?

Answer rating: 100% (QA)

SOLUTION When a company acquires another company any difference between the cost of the acquisition and the fair value of the acquired companys net as... View the full answer