Question How should the acquired asset be valued and reflected on Company A's books on January 1, 2022?
Background: On December 31, 2021, Company A purchased acquired various assets from Company B as follows:
and assumed liabilities does not meet the definition of a business under ASC 805.
Umbrella
Table
Lemon squeezer
The books and records of Company B value these assets at December 31, 2021 as follows
Umbrella $100
Table $50
Lemon squeezer $150
Company B determined the fair value for these assets on January 1, 2022 to be as follows:
Umbrella $80
Table $20
Lemon squeezer $100
On December 31, 2021, Company A paid $350 for these assets.
Question
How should the acquired asset be valued and reflected on Company A's books on January 1, 2022?
US GAAP standards used:
ASC_____,EY FRD Business Combinations, p.
Methodology applied:
Calculation:
Findings:
Conclusion:
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