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Hey I'm looking through my professors lecture and I can't seem to find out how he calculated "fair value of net assets acquired."
To record Purchase of Net assets:
Cash - 40,000
Marketable investments - 66,000
Inventory - 110,000
Land - 72,000
Buildings - 288,000
Equipment - 145,000
Customer List - 125,000
Current Liabilities - 25,000
Bonds Payable - 100,000
Warrant Liability - 12,000
Common stock ($1 par, 25,000 shares issued)
Paid-In Capital In Excess of Par ($20 per share * 25000 shares less, 25,000 assigned to par) - 475,000
Fair Value of net assets Acquired should equate to (705,000)
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