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Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1,...

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Accounting

Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2021, 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 $ 33,000 $ 33,000
Building 103,250 54,250
Land 31,750 43,850
Trademark 0 34,600
Goodwill 15,500 ?
Liabilities (48,500 ) (48,500 )
Common stock (100,000 )
Retained earnings (35,000 )

1&2. Prepare Allertons entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $155,000 and $94,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the acquisition of Delex assuming the cash exchange of $155,000.

2. Record the acquisition of Delex assuming the cash exchange of $94,000.

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