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  3. on may 31, 2021, armstrong company paid $3,500,000

On May 31, 2021, Armstrong Company paid $3,500,000 to acquire Hall Corporation. Hall reported the...

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Accounting

On May 31, 2021, Armstrong Company paid $3,500,000 to acquire Hall Corporation. Hall reported the following balance sheet at the time of the acquisition:

Current assets $ 900,000 Current liabilities $ 600,000

Noncurrent assets 2,700,000 Long-term liabilities 500,000

Stockholders equity 2,500,000

Total liabilities and

Total assets $3,600,000 stockholders equity $3,600,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000. At May 31, 2021, Hall reports the following balance sheet information:

Current assets $ 800,000

Noncurrent assets (including goodwill recognized in purchase) 2,400,000

Current liabilities (700,000)

Long-term liabilities (500,000)

Net assets $2,000,000

Instructions:

Prepare the May 31, 2021, journal entry for Armstrong.

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