Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2024, and
Question:
Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2024, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:
Prepare Allerton’s journal entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts:
a. $145,000.
b. $110,000.
Transcribed Image Text:
Current assets Building Land .... Trademark Goodwill Liabilities Common stock Retained earnings Book Values $ 60,000 90,000 10,000 -0- 15,000 (40,000) (100,000) (35,000) Fair Values $ 60,000 50,000 20,000 30,000 ? (40,000)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
a Acquisition method entries for a merger b Bargain Purchase under acqui...View the full answer
Answered By
Akshay Agarwal
I am a Post-Graduate with a specialization in Finance. I have been working in the Consulting industry for the past 8 years with a focus on the Corporate and Investment Banking domain. Additionally, I have been involved in supporting student across the globe in their academic assignments and always strive to provide high quality support in a timely manner. My notable achievements in the academic field includes serving more than 10,000 clients across geographies on various courses including Accountancy, Finance, Management among other subjects. I always strive to serve my clients in the best possible way ensuring high quality and well explained solutions, which ensures high grades for the students along-with ensuring complete understanding of the subject matter for them. Further, I also believe in making myself available to the students for any follow-ups and ensures complete support and cooperation throughout the project cycle. My passion in the academic field coupled with my educational qualification and industry experience has proved to be instrumental in my success and has helped me stand out of the rest. Looking forward to have a fruitful experience and a cordial working relationship.
5.00+
179+ Reviews
294+ Question Solved
Related Book For
Advanced Accounting
ISBN: 9781264798483
15th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer And Timothy Doupnik
Question Posted:
Students also viewed these Business questions
-
Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2015, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair...
-
Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2013, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair...
-
Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair...
-
On 1 January 2022, ABC Company issued 10,000 shares of common stock for $100,000. On 31 December 2022, the company declared and paid dividends of $10,000. Calculate the earnings per share and the...
-
(a) What areas might be cut back? (b) How much in each area might be cut back? (c) After finishing your analysis, what advice (and possibly alternatives) would you offer Courtney about buying the new...
-
Draw all possible staggered and eclipsed conformations of 1-bromo-2-chloroethane (see the following balland- stick model), using Newman projections. Underneath each structure, draw the corresponding...
-
A person donates a bag of clothes to Goodwill completely unaware that there is valuable sterling silver in the bag. The clothing and silver are subsequently sold, for a very economical price, to...
-
Creation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2014: Costs incurred: Purchases of direct materials (net) on credit...... $...
-
need 1) ERD and 2) relational model for an airline company An airline company has many planes that travel between different airports. A trip is handled by one pilot and involves one plane. Trips...
-
On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $200,000 in long-term...
-
On June 30, 2024, Sundown Company reported the following account balances: On June 30, 2024, Pelcore Company paid $310,800 cash for all assets and liabilities of Sundown, which will cease to exist as...
-
Edwards Construction currently has debt outstanding with a market value of $340,000 and a cost of 6 percent. The company has an EBIT of $20,400 that is expected to continue in perpetuity. Assume...
-
Bill Hewlett and Dave Packard, two Stanford University graduates who later created the Hewlett-Packard Company or HP, did so in 1939. HP was founded in a Palo Alto, California, garage and is now a...
-
What are the fundamental doctrines and beliefs that constitute the teachings of the Catholic faith?
-
Are there existing public communication programs, processes, systems, efforts, and plans in place for the purposes of public education? What are they? Explain in detail. Has the effectiveness of any...
-
Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 10.5%/yea EOY A001 B002 C003 0 -200 -110 -154 1 95 60 78 2 105 60 78 3 115 60 78 4 125 70 78
-
Justify your recommendation regarding the client's daughter having an ownership interest . Provide details supporting the recommendation taking into consideration the jargon and mechanics of the...
-
A 0.20-kg object with a horizontal speed of hits a wall and bounces directly back with only half the original speed. (a) What percentage of the objects initial kinetic energy is lost: (1) 25%, (2)...
-
d) For die casting processes: 1. What are the most common metals processed using die casting and discuss why other metals are not commonly die casted? 2. Which die casting machines usually have a...
-
How should the parents investment in subsidiary account be classified in a consolidated balance sheet? In the parents separate balance sheet?
-
How should the parents investment in subsidiary account be classified in a consolidated balance sheet? In the parents separate balance sheet?
-
Name some reciprocal accounts that might be found in the separate records of a parent and its subsidiaries.
-
When a customer returns merchandise and the retailer agrees to give a full refund, a. Sales is debited for the amount of the sale excluding the sales tax. b. Sales Returns and Allowances is debited...
-
Samantha Dickerson is the manager for the cardiac department at Jefferson Medical Center. Every year she must figure out operating expenses for equipment and salaries for the cardiac department's...
-
Rephrase. I am a new member at FWA, and member of the ME committee. The president-elect Albana Theka has forwarded our committee your email with regard to the Financial Literacy workshop. I would...
Study smarter with the SolutionInn App