A Company purchases another Company for $500,000. They receive the following assets: Cash $150,000 Accounts Receivable $50,000 Inventory $165,000 Equipment $140,000 Patents $20,000 Liabilities $75,000

A Company purchases another Company for $500,000. They receive the following assets: Cash $150,000 Accounts Receivable $50,000 Inventory $165,000 Equipment $140,000 Patents $20,000 Liabilities $75,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

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Problem 4
A Company purchases another Company for $500,000. They receive the following assets:
Cash $150,000
Accounts Receivable $50,000
Inventory $165,000
Equipment $140,000
Patents $20,000
Liabilities $75,000
Note: All of the assets are shown at the fair market value.
Prepare the entry to record the purchase.
Account Title
Debit
Credit

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