On May 31, 2020, Dana Company paid $ 550,000 cash and issues 15,000 shares of its...

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On May 31, 2020, Dana Company paid $ 550,000 cash and issues 15,000 shares of its stock with a market value of $15 ($10 par value) for Naser Company net assets. Naser Company is dissolved. On May 31, 2020, Naser Company reported the following account balances: Naser Company Accounts Book Value FairValue Current Assets $280,000 $320,000 Plant Assets (net) 360,000 560,000 Liabilities 160,000 140,000 Common Stock, $10 par value 100,000 Additional paid-in capital 300,000 Retained Earnings 80,000 Net Assets 480,000 740,000 Required: 1. Record Journal entries on Dana' Books needed to record this combination. 2. What amount of goodwill will be reported for the business combination 3. What amount of plant assets acquired should be recorded in this combination by Dana Company? On May 31, 2020, Dana Company paid $ 550,000 cash and issues 15,000 shares of its stock with a market value of $15 ($10 par value) for Naser Company net assets. Naser Company is dissolved. On May 31, 2020, Naser Company reported the following account balances: Naser Company Accounts Book Value FairValue Current Assets $280,000 $320,000 Plant Assets (net) 360,000 560,000 Liabilities 160,000 140,000 Common Stock, $10 par value 100,000 Additional paid-in capital 300,000 Retained Earnings 80,000 Net Assets 480,000 740,000 Required: 1. Record Journal entries on Dana' Books needed to record this combination. 2. What amount of goodwill will be reported for the business combination 3. What amount of plant assets acquired should be recorded in this combination by Dana Company?

Answer rating: 100% (QA)

Answer 1 Date Accounts Debit Credit May 31 2020 Invest... View the full answer