Record the acquisition entry for Kiln Corporation that would result under each of the alternative offers. Value analysis is suggested.

  

1. Kiln Corporation pays $300,000 in cash.

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Current assets: Accounts receivable. Inventory Noncurrent assets: Land. Building (net) Total assets Assets $50,000 300,000 $ 20,000 70,000 Williams Incorporated Balance Sheet December 31, 2015 Accounts payable 90,000 $440,000 Liabilities and Equity $350,000 Stockholders' equity: Common stock. Paid-in capital in excess of par Retained earnings Total liabilities and equity The following fair values differ from existing book values: Inventory. Land. Building. $ 40,000 110,000 250,000 $250,000 40,000 120,000 $ 40,000 400,000 $440,000 Current assets: Accounts receivable. Inventory Noncurrent assets: Land. Building (net) Total assets Assets $50,000 300,000 $ 20,000 70,000 Williams Incorporated Balance Sheet December 31, 2015 Accounts payable 90,000 $440,000 Liabilities and Equity $350,000 Stockholders' equity: Common stock. Paid-in capital in excess of par Retained earnings Total liabilities and equity The following fair values differ from existing book values: Inventory. Land. Building. $ 40,000 110,000 250,000 $250,000 40,000 120,000 $ 40,000 400,000 $440,000

Answer rating: 100% (QA)

To record the acquisition entry for Kiln Corporation when it pays 300000 in cash for Williams Incorp... View the full answer