Question: Please provide the breakdown on how you get the numbers for the journal entry 46. Asset acquisition vs. stock purchase (fair value equals book value)
Please provide the breakdown on how you get the numbers for the journal entry

46. Asset acquisition vs. stock purchase (fair value equals book value) Assume an investor purchases the business of an investee. The fair value of the investee company is equal to its reported book value and the fair values of the individual net assets are equal to their reported book values. The investee company reports the following balance sheet on the acquisition date $ 3,360 $1,680 3,360 6,720 Cash... Accounts payable. . Aocrued liabilities Accounts receivable 5,040 Inventories Current assets 11,760 Current liabilities. . 8,400 Long-tem liabilities. Stockholders' equity 6,720 PPE, net 13,440 16,800 Total liabilities & equity $28,560 $28,560 Total assets. . Parts a. and b. are independent of each other. Provide the journal entry if the investor pays cash and purchases the assets and assumes the liabilities of the investee company a. b Provide the journal entry if the investor pays cash and purchases all of the stock of the investee's shareholders
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