Please help with section B$).$

ConcordCorporation purchased the net assets of Cullumber Corporation on January $2,2020$ for $$700,000$ and also paid $ $25,000$ in direct acquisition costs. Cullumber's balance sheet on January $1,2020$ was as follows: Fair values agree with book values except for inventory, land, and equipment, which have fair values of $$490,000,$$$60,000$ and $$90,000,$ respectively. Cullumber has patent rights valued at $$25,000.$

$($a$)$

Correct Answer $($Used$)$

Prepare Concord $\text{'}$s general journal entry for the cash purchase of Cullumber's net assets. $($Credit account titles are automatically

indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for

the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Inventory

Land

Building

Equipment

Patent

Goodwill

Acquisition Expense

Long$-$Term Debt

$200,000$

$725,000$

$($b$)$

Assume Concord Corporation purchased the net assets of Cullumber Corporation for $$640,000$ rather than $$700,000,$ prepare

the general journal entry. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no

entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Inventory

Current Liabilities

Long$-$Term Debt