2. Peter Piper Corp acquires Silly Suzy Corp for $420,000.00 Cash on 1/1/21.  At the time of the purchase Silly Suzy Corporation had the following Balance Sheet:

                                                                        Current Liabilities          $90,000

Inventory                                  72,000              Bonds Payable              100,000

Land                                         60,000              Common Stock $1 par   20,000

Buildings                                  250,000            Paid in Capital               80,000

Accum Dep Blg                          (50,000)            Retained Earnings         112,000

Equipment                                100,000

Accum Dep-Equip                      (30,000)

Total                                        $402,000          Total                            $402,000

FMV at Date of Acquisition:

Land                                         $120,000

Buildings                                  $300,000

Record the ASSET Acquisition on the Books of BOTH the Buyer and Seller.

Answer rating: 100% (QA)

In the Books of Silly Suzy ie Seller Journal Entry to be Passed Accounts Debit Credit Current Liabil... View the full answer