On January 1, 2017, DELL Corporation purchased the non-cash net assets of YVR Ltd. for...
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Accounting
On January 1, 2017, DELL Corporation purchased the non-cash net assets of YVR Ltd. for $8,414,100. Following is the statement of financial position of YVR Ltd. from the company's year-end the previous day:
As part of the negotiations, DELL and YVR agreed on the following fair values for the items on YVR's statement of financial position:
Accounts receivable
$554,400
Inventory
2,355,000
Property, plant, and equipment
1,875,000
Land
3,760,000
Accounts payable
229,300
the journal entry on the books of AMI Corporation to record the purchase of the net assets of YVR, assuming DELL paid cash for the net assets.
Prepare the journal entry on the books of AMI Corporation to record the purchase, assuming that instead of buying the net assets of YVR, DELL purchased all of the company's shares, instead.
YVR Ltd. Statement of Finanial Position As at December 31, 2016 $690,000 556,000 2,570,000 Cash Accounts receivable Inventory Property, plant, and equipment (net) Land 2,080,000 2,610,000 $8,506,00 Accounts payable Common shares Retained earnings $366,000 2,530,000 5,610,000 $8,506,00
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