Business Combination Versus Asset AcquisitionAs part of a project, Webflow Inc. acquires these assets from Digital Sea Company (in millions):Fair Value$4CashTrading debt investmentsEquipmentin process R&D624060The 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 costsNote: 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.DebitCreditCashto record the business combination00000DO010000340it is an ecat acnuutine Ama the cash and diethindacate 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.DebitCreditVVCashTo record the business combinationCashTo record the asset acquisibon00000D0b. Prepare the journal entry to record the acquisition if it is an asset acquisition, Assume the cash and trading investments are nonqualifying assetsDebitCredit00003400000000940

The asset acquisition and the business combination are two types of methods used in the acquisition.…

Business Combination Versus Asset Acquisition As part of a project. Webflow Inc. acquires these assets from Digital Sea Company (in millions Fair Value D $4 Cash Trading debt investments Equipment In process R&D 6 240 60 The in-process R&D has no alternative future use. Webflow pays $335 million in cash for the acquired assets, and also pays $5 milion 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 to record the business combination 0 0 0 0 0 0 0 0

Business Combination Versus Asset Acquisition As part of a project. Webflow Inc. acquires these assets from Digital Sea Company (in millions Fair Value D $4 Cash Trading debt investments Equipment In process R&D 6 240 60 The in-process R&D has no alternative future use. Webflow pays $335 million in cash for the acquired assets, and also pays $5 milion 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 to record the business combination 0 0 0 0 0 0 0 0

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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Only Part B please and thank you! E2.20 Business Combination Versus Asset Acquisition As part of a project, Webflow Inc. acquires these assets from Digital Sea Company (in millions): Cash.. Trading debt investments Equipment In-process R&D Fair Value $4 6 240 60 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. Required a. Prepare the journal entry to record the acquisition if it qualifies as a business combination. b. Prepare the journal entry to record the acquisition if it is an asset acquisition. Assume the cash and trading investments are nonqualifying assets.
Business Combination Versus Asset Acquisition As part of a project, Webflow Inc. acquires these assets from Digital Sea Company (in millions) Fair Value Cash Trading debt investments Equipment In-process R&D 240 60 6 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 : 0 : : : : Cash To record the business combination 0 0 O 0 0 0 O O 0 0 0 0 340
Only Part B please and thank you! E2.20 Business Combination Versus Asset Acquisition As part of a project, Webflow Inc. acquires these assets from Digital Sea Company (in millions): Cash.... Trading debt investments Equipment In-process R&D Fair Value $ 4 6 240 60 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. Required a. b. Prepare the journal entry to record the acquisition if it qualifies as a business combination. Prepare the journal entry to record the acquisition if it is an asset acquisition. Assume the cash and trading investments are nonqualifying assets.
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