On the above date, Holdco acquired Subco for a sum of $74,000. The assets and liabilities of Subco were revalued as under: Inventory 7,640.00$ Automobiles 16,860.00$ Investments 15,975.00$ Machinery 18,630.00$ Income tax payable 14,360.00$ Salaries payable 11,180.00$
You are required to 1) calculate the amount of Goodwill / Bargain Purchase 2) prepare a journal entry on day one of acquisition by Holdco.
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