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: Items Book Values Fair Values Current assets $ 88,200 $88,200 Equipment 131,000 198,000 Trademark Liabilities 352,000 (74,200) (74,200) (100,000) (45,000) Common stock Retained earnings In addition, Acme paid an investment bank $30,900 cash for assistance in arranging the combination. Required: 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 cash amounts of $651,900 and $446,300 were paid to the former owners of Brem b. How would these journal entries change if the acquisition occurred post-2009 and therefore Acme applied the acquisition method? Record the acquisition of Brem using the purchase method assuming $446,300 was paid to the former owners of Brem. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded assets and liabilities of XYZ Corporation on July 1, 2022, immediately before the acquisition are as follows: Cash P   800,000 Inventory 2,400,000 Property and equipment, net 4,800,000 Liabilities 1,800,000   On July 1, 2022 it was determined that the inventory of XYZ had a fair value of P1,900,000, and the property and equipment, net had a fair value of P5,600,000.   What is the amount of goodwill (gain on bargain purchase) that will be reported in the books of ABC?

On 1/1/2020, X Company acquired 100% of Y Company's Net assets for $150,000 cash. The Book value of Y's Net assets was equal to the fair value of Y Company's net assets at the date of acquisition except for Land (included in fixed assets) its market value was less than the book value by $1,000, the balance sheet data at 1/1/2020, are as follows: item X co Y co cash 404,000 150,000 Fixed assets 100,000 66,000 Liabilities 144,000 72,000 Common stock 120,000 60,000 Retained earning 240,000 84,000 required: if the acquisition are merger record the journal entries and prepare x balance sheet after the merger

Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,185,400 cash. The balance sheet of Succo Company immediately prior to the acquisition showed:     Book value   Fair value Current assets   $ 871,440   $871,440 Plant and equipment   1,025,090   1,437,590 Total   $1,896,530   $2,309,030           Liabilities   $194,060   $207,670 Common stock   484,800     Other contributed capital   632,900     Retained earnings   584,770     Total   $1,896,530     As part of the negotiations, Pritano agreed to pay the stockholders of Succo $356,690 cash if the post-combination earnings of Pritano averaged $2,185,400 or more per year over the next two years. The estimated fair value of the contingent consideration was $143,480 on the date of the acquisition.             (a) Prepare the journal entry on the books of Pritano to record the acquisition on December 31, 2013. (If no entry is required, select…

Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,234,440 cash. The balance sheet of Succo Company immediately prior to the acquisition showed:     Book value   Fair value Current assets   $ 962,320   $962,320 Plant and equipment   1,186,440   1,337,450 Total   $2,148,760   $2,299,770           Liabilities   $191,390   $214,050 Common stock   471,160     Other contributed capital   584,100     Retained earnings   902,110     Total   $2,148,760     As part of the negotiations, Pritano agreed to pay the stockholders of Succo $385,210 cash if the post-combination earnings of Pritano averaged $2,234,440 or more per year over the next two years. The estimated fair value of the contingent consideration was $148,740 on the date of the acquisition.             (a) Prepare the journal entry on the books of Pritano to record the acquisition on December 31, 2013. (If no entry is required, select…

Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:     BookValues     FairValues   Current assets $ 20,250     $ 20,250   Building   110,250       65,150   Land   17,250       28,550   Trademark   0       34,600   Goodwill   37,500       ?   Liabilities   (50,250 )     (50,250 ) Common stock   (100,000 )         Retained earnings   (35,000 )           1&2. Prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $132,000 and $86,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,145,600 cash. The balance sheet of Succo Company immediately prior to the acquisition showed:     Book value   Fair value Current assets   $ 995,110   $995,110 Plant and equipment   979,390   1,375,740 Total   $1,974,500   $2,370,850           Liabilities   $187,040   $235,560 Common stock   524,720     Other contributed capital   588,400     Retained earnings   674,340     Total   $1,974,500     As part of the negotiations, Pritano Company agreed to issue 9,230 additional shares of its $10 par value common stock to the stockholders of Succo if the average postcombination earnings over the next three years equaled or exceeded $2,481,300. The fair value of the contingent consideration on the date of acquisition was estimated to be $219,700. The contingent consideration (earnout) was classified as equity rather than as a liability.…

Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2024, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts: Items Current assets Building Land Book Values Fair Values $ 53,500 93,750 $ 53,500 47,750 24,250 41,250 Trademark 0 39,300 Goodwill 20,000 ? Liabilities (56,500) (56,500) Common stock (100,000) Retained earnings (35,000) 0 0 Required: a. and b. Prepare Allerton's journal entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $167,000 and $104,500. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company’s balance sheet was as follows:     Book Value   Fair Value Cash   $122,900   $122,900 Receivables (net)   207,560   232,240 Inventory   361,510   389,840 Plant and equipment (net)   459,200   573,420 Land   417,050   617,650      Total assets   $1,568,220   $1,936,050           Current Liabilities   $526,250   $596,650 Common stock ($5 par value)   477,680     Other contributed capital   126,920     Retained earnings   437,370          Total equities   $1,568,220                 (a) Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of the liabilities of Saville Company if the amount paid was $1,567,060 in cash. (If no entry is required, select "No Entry" for the account titles and enter 0 for the…

Assume that ayisiyiniwiwinak Corp. paid $19 million to purchase 10-Trees Inc. Below is a summary of the balance sheet of 10-Trees Inc. at the time of the ayisiyiniwiwinak Corp. acquisition (amounts are given in million $). The fair value of 10-Tree Inc.'s non-current assets was higher than the book value and amounted to $24 at that time. Assets Current assets Non-current assets Total assets 6 18 24 Liabilities Current liabilities Non-current liabilities Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 8 10 18 2 4 6 24 Requirement 1: Based on the information provided above, fill Blanks 1 and 2. Blank #1: What is the goodwill resulting from this transaction? Enter your response as a plain number (no $-signs or decimals).