Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1,...
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Accounting
Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2021, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:
Book Values
Fair Values
Current assets
$
33,000
$
33,000
Building
103,250
54,250
Land
31,750
43,850
Trademark
0
34,600
Goodwill
15,500
?
Liabilities
(48,500
)
(48,500
)
Common stock
(100,000
)
Retained earnings
(35,000
)
1&2. Prepare Allertons entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $155,000 and $94,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the acquisition of Delex assuming the cash exchange of $155,000.
2. Record the acquisition of Delex assuming the cash exchange of $94,000.
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