On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a...

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On January 1, 16 Brown Inc. acquired Larson Company's net assets in exchange for Brown's common stock with a par value of $100,000 and a fair value of $800,000. Brown also paid $10,000 in direct acquisition costs and $15,000 in stock issuance costs. On this date, Larson's condensed account balances showed the following: Current Assets Plant and Equipment Accumulated Depreciation Intangibles - Patents Current Liabilities Long-Term Debt Common Stock Other Paid-in Capital Retained Earnings Required: Record Brown's purchase of Larson Company's net assets. Book Value $280,000 440,000 (100,000) 80,000 (140,000) (100,000) (200,000) (120,000) (140,000) Fair Value $370.000 480,000 120,000 (140,000) (110,000)

Answer rating: 100% (QA)

To record Brown Inc s purchase of Larson Company s net assets we need to account for the fair value View the full answer