Full file at https://testbankuniv.eu/Advanced-Accounting-13th-Edition-Hoyle-Solutions-Manual Chapter 02 – Consolidation of Financial Information – Hoyle, Schaefer, Doupnik, 13e
25. (20 minutes) Journal entries for a merger using alternative values. a. Acquisition date fair values: Cash paid Contingent performance liability Consideration transferred Fair values of net assets acquired Gain on bargain purchase
$700,000 35,000 $735,000 750,000 $ 15,000
Receivables 90,000 Inventory 75,000 Copyrights 480,000 Patented Technology 700,000 Research and Development Asset 200,000 Current liabilities 160,000 Long-Term Liabilities 635,000 Cash 700,000 Contingent Performance Liability 35,000 Gain on Bargain Purchase 15,000 Professional Services Expense Cash
100,000 100,000
b. Acquisition date fair values: Cash paid Contingent performance liability Consieration transferred Fair values of net assets acquired Goodwill
$800,000 35,000 $835,000 750,000 $ 85,000
Receivables 90,000 Inventory 75,000 Copyrights 480,000 Patented Technology 700,000 Research and Development Asset 200,000 Goodwill 85,000 Current Liabilities 160,000 Long-Term Liabilities 635,000 Cash 800,000 Contingent Performance Liability 35,000 Professional Services Expense Cash
100,000 100,000
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Full file at https://testbankuniv.eu/Advanced-Accounting-13th-Edition-Hoyle-Solutions-Manual