• Record the acquisition date fair values. $498,900

• How would these journal entries change if the acquisition occurred post-2009 and therefore Acme applied the acquisition method? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

  $711,900

• Record the acquisition entry of Brem company for the bargain purchase under the acquisition method.
  • $498,900

In a pre-2009 business combination, Acme Company acquired all of Brem Company's assets and liabilities for cash. After the combination Acme formally dissolved Brem. At the acquisition date, the following book and fair values were available for the Brem Company accounts: Current assets Equipment Trademark Liabilities Common stock Retained earnings Book Values $ 91,800 122,000 0 (68,800) (100,000) (45,000) Fair Values $ 91,800 198,800 398,000 (68,800) Note: Parentheses indicate a credit balance. In addition, Acme paid an investment bank $28,100 cash for assistance in arranging the combination. a. Using the legacy purchase method for pre-2009 business combinations, prepare Acme's entry to record its acquisition of Brem in its accounting records assuming the following cash amounts were paid to the former owners of Brem: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to two decimal places.) 1. $711,900