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Balance Sheet of Subco. as of 1st January 20X1 is as under: Current Assets...

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Accounting

Balance Sheet of Subco. as of 1st January 20X1 is as under:

Current Assets Current Liabilities

Cash 2,190 Accounts Payable 43,840

Accounts Receivables 21,450 Salaries Payable 7,140

Inventory 9,540 Income tax payable 11,680

Machinery 23,840 Bank Loan 97,480

Automobiles 18,150 Shareholders' Equity 57,100

Investments 14,650

Buildings 127,420

 217,240 217,240

On the above date, Holdco acquired Subco for a sum of $74,000. The assets and liabilities of Subco were revalued as under: Inventory 7,640.00$ Automobiles 16,860.00$ Investments 15,975.00$ Machinery 18,630.00$ Income tax payable 14,360.00$ Salaries payable 11,180.00$

You are required to 1) calculate the amount of Goodwill / Bargain Purchase 2) prepare a journal entry on day one of acquisition by Holdco.

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