Company A purchased company B. There 3 situations below are independent. What journal entries should...
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Company A purchased company B. There 3 situations below are independent. What journal entries should be made? a) company Apurchased the assets and assumed the liabilities ofcompany bby paying $1,400,000 in cash and issuing a $12,600,000 note. b) company Aissued 280,000 common shares in exchange for all ofcompany boutstanding shares. The fair value of thecompany Ashares was $14,000,000. c) In exchange for all ofcompany b'soutstanding shares,company Apaid $700,000 cash and issued 189,000 common shares with a market value of $9,450,000.
a) company Apurchased the assets and assumed the liabilities ofcompany bby paying $1,400,000 in cash and issuing a $12,600,000 note.
b) company Aissued 280,000 common shares in exchange for all ofcompany boutstanding shares. The fair value of thecompany Ashares
was $14,000,000.
c) In exchange for all ofcompany b'soutstanding shares,company Apaid $700,000 cash and issued 189,000 common shares with a
market value of $9,450,000.
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