Barton Company is contemplating the acquisition of the net assets of Crowley Company for $850,000 cash. To
Question:
The following fair values have been obtained for Crowleys identifiable assets and liabilities:
Current assets .............. $100,000
Land................... 90,000
Building................. 300,000
Equipment ............... 275,000
Liabilities ............... 102,000
1. Record the acquisition of the net assets of Crowley Company on Barton Companys books.
2. Record the sale of the net assets on the books of Crowley Company.
3. Record the acquisition of 100% of the common stock of Crowley Company on Bartons books. Crowley Company will remain a separate legal entity.
Transcribed Image Text:
Crowley Company Balance Sheet December 31, 2011 Assets Liabilities and Equity Current assets .. - . . .80,000 ibilities Land. Building... Accumulated depreciation building. Equipment Accumulated depreciation-equipment $100,000 100,000 150,000 Retained earnings . . 230,000 Common stock ($10 par) Paid-in capital in excess of par 50,000 450,000 (200,000 300,000 100,000 $580,000 Total assets. oal labilities and equity $580,000
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1 Current Assets 100000 Land 90000 Building 300000 Equipment 275000 Goodwill 187000 Liabilit...View the full answer
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Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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