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Vander Company acquired the net assets of Howe Company for $190,000. Vander issued 5000 shares of...

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Accounting

Vander Company acquired the net assets of Howe Company for$190,000. Vander issued 5000 shares of its $1 par common stock tocomplete the transaction. Vander's stock was selling for $38 ashare on the date of acquisition. On the date of acquisition Howereported the following:

           Cost

Book Value

Fair Value

Cash

$ 65,000

$ 65,000

$ 65,000

Inventory

50,000

50,000

55,000

Equipment

95,000

70,000

85,000

Accounts Payable

35,000

35,000

35,000

Prepare the journal entry that Vander Company recorded on thedate of the acquisition of Howe’s net assets

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