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Business Combination Versus Asset Acquisition Haley Corporation pays $3,900,000 in cash to acquire assets from...

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Accounting

Business Combination Versus Asset Acquisition

Haley Corporation pays $3,900,000 in cash to acquire assets from Jaxon Inc., as follows:

Fair ValueMachinery and equipment$1,800,000Developed technology (limited-life)1,260,000Customer lists (limited-life)540,000

In addition, Haley pays $100,000 in cash for legal and advisory costs connected with the acquisition.

Required

Note: Enter all zeros with your numerical answers,do not abbreviateyour answersin thousandsorin millions.

a. Prepare the journal entry to record the acquisition, assuming it qualifies as a business combination.

DebitCreditAnswerAnswerAnswerAnswerAnswerAnswerTo record the business combination

b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition.

DebitCreditAnswerAnswerAnswerAnswerTo record the asset acquisition

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