Question 2 Company Y acquired Company Z on January 1, 2019. Company Z had the following...

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Question 2 Company Y acquired Company Z on January 1, 2019. Company Z had the following items on its books: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $800,000; Land $350,000; Liabilities $650,000; Common Stock $500,000; Retained earnings $305,000. The fair value of the asset items are: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $1,400,000; Land $550,000. Record the journal entry of this acquisition if Company Y offered Company Z 1) $1.8 million and 2) $1.4 million. Question 2 Company Y acquired Company Z on January 1, 2019. Company Z had the following items on its books: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $800,000; Land $350,000; Liabilities $650,000; Common Stock $500,000; Retained earnings $305,000. The fair value of the asset items are: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $1,400,000; Land $550,000. Record the journal entry of this acquisition if Company Y offered Company Z 1) $1.8 million and 2) $1.4 million.

Answer rating: 100% (QA)

Account Titles Cash Accounts Receivables Prepaid Expenses Building Land Goodwill Cash Common sto... View the full answer