In a pre business combination, Acme Company acquired all of Brem Company's assets and liabilities
for cash. After the combination, Acme formally dissolved Brem. At the acquisition date, the following book
and fair values were available for the Brem Company accounts:
In addition, Acme paid an investment bank $ cash for assistance in arranging the combination.
Required:
a Using the legacy purchase method for pre business combinations, prepare Acme's entry to record
its acquisition of Brem in its accounting records assuming the cash amounts of $ and $
were paid to the former owners of Brem.
b How would these journal entries change if the acquisition occurred post and therefore Acme
applied the acquisition method?
Note: If no entry is required for a transactionevent select No journal entry required" in the first account
field.
