Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1,...
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| Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2015, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts: |
| Book Values | Fair Values | |||
| Current assets | $ | 46,750 | $ | 46,750 |
| Building | 100,750 | 57,850 | ||
| Land | 15,750 | 35,350 | ||
| Trademark | 0 | 38,000 | ||
| Goodwill | 23,000 | ? | ||
| Liabilities | (51,250) | (51,250) | ||
| Common stock | (100,000) | |||
| Retained earnings | (35,000) | |||
| Prepare Allertons entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| (1) | $165,500. |
| (2) | $102,500. |
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