On July 1, 2020, Concord Corporation purchased Young Company by paying $258,200 cash and issuing a $141,000
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On July 1, 2020, Concord Corporation purchased Young Company by paying $258,200 cash and issuing a $141,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.
Cash | | $50,600 | | Accounts payable | | $207,000 |
---|---|---|---|---|---|---|
Accounts receivable | | 91,800 | | Stockholders’ equity | | 244,600 |
Inventory | | 109,000 | | | | $451,600 |
Land | | 41,700 | | | | |
Buildings (net) | | 75,600 | | | | |
Equipment (net) | | 70,900 | | | | |
Trademarks | | 12,000 | | | | |
| | $451,600 | | | | |
The recorded amounts all approximate current values except for land (fair value of $60,500), inventory (fair value of $126,400), and trademarks (fair value of $17,360).
Related Book For
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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