Business Combination Versus Asset Acquisition As part of a project, Webflow Inc. acquires these assets from Digital Sea Company (in millions) Fair Value Trading debt investments Equipment In-process R&D 6 240 The in-process R&D has no alternative future use. Webflow pays $335 million in cash for the acquired assets, and also pays $5 million in cash for legal and advisory costs Note: Provide all answers in millions and round answers to the nearest whole number. For example, 16,355,000 would be 16. a. Prepare the journal entry to record the acquisition if it qualifies as a business combination. Debit Credit 9 : # : Cash To record the business combination 0 O 0 0 0 0 O O 0 O O 0 340

Business Combination Versus Asset Acquisition As part of a project, Webflow Inc. acquires these assets from Digital Sea Company (in millions) Fair Value Trading debt investments Equipment In-process R&D 6 240 The in-process R&D has no alternative future use. Webflow pays $335 million in cash for the acquired assets, and also pays $5 million in cash for legal and advisory costs Note: Provide all answers in millions and round answers to the nearest whole number. For example, 16,355,000 would be 16. a. Prepare the journal entry to record the acquisition if it qualifies as a business combination. Debit Credit 9 : # : Cash To record the business combination 0 O 0 0 0 0 O O 0 O O 0 340

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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