The following book and fair values were available to Westmont Company as of March 1. Value in
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The following book and fair values were available to Westmont Company as of March 1.
Value in books | fair value | |
Inventory | 494,000 | 449,500 |
Tierra | 763,500 | 1,060,500 |
Buildings | 1,975,000 | 2,303,500 |
Relations with clients` | 0 | 859,500` |
Accounts payable | (118,000) | (118,000) |
Common actions | (2,000,000) | |
Additional payment in principal | (500,000) | |
Retained earnings 1/1 | (427,000) | |
Income | (486,000) | |
Bills | 298,500 |
Arturo pays $4,420,000 in cash to acquire Westmont. No shares are issued and Arturo pays $49,000 in legal fees to complete the transaction.
Prepare Arthur's journal entry to record his Westmont acquisition.
1. Record the acquisition of the Westmont Company.
2. Record the legal fees related to the combination.
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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