On January 1, 20X2, Frost Company acquired all of TKK corporation's assets and liabilities by issuing 24,000
Question:
On January 1, 20X2, Frost Company acquired all of TKK corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At this date, Frost shares were selling at $22 per share. Historical cost and fair value balance sheet data for TKK at the time of acquisition were as follows:
Frost paid legal fees for the transfer of assets and liabilities of $14,000, audit fee of $21,000 and listing application fees for the new shares of $7,000.
Required:
Prepare the journal entries made by Frost to record the businesscombination.
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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