ASC 805-50-30-2 states: Asset acquisitions in which the consideration given is cash are measured by...
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Accounting
ASC 805-50-30-2 states:
Asset acquisitions in which the consideration given is cash are measured by the amount of cash paid, which generally includes the transaction costs of the asset acquisition.
The journal entry to record the acquisition for treatment of transaction costs consists of:
License to Distribute: 2, 270,000
Contract: 780,000
Cash: 3,000,000
Accounting Fee: 50,000
Natures Best is transferring 3,000,000 in cash in exchange for the acquisition of assets which include the fair market value of both the customer contracts and the sublicense of the distribution rights. The legal, accounting, and other professional fees of 50,000 are incurred as part of the sublicense distribution rights.
***CAN SOMEONE TELL ME CORRECT ENTRY FOR THE CREDITS, MY DEDITS ARE CORRECT***
***CAN SOMEONE TELL ME CORRECT ENTRY FOR THE CREDITS, MY DEDITS ARE CORRECT***
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