Maplewood Corporation Purchased the Net Assets of West Corporation on January

question 35

Essay

Maplewood Corporation purchased the net assets of West Corporation on January 2, 2016 for $560,000 and also paid $20,000 in direct acquisition costs. West's balance sheet on January
1, 2016 was as follows: Fair values agree with book values except for inventory, land, and equipment, which have fair values of $400,000, $50,000 and $70,000, respectively. West has patent rights valued at $20,000.
Required:
A. Prepare Maplewood's general journal entry for the cash purchase of West's net assets.
B. Assume Maplewood Corporation purchased the net assets of West Corporation for $500,000 rather than $560,000, prepare the general journal entry.

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Definitions:

Gonorrhea

A bacterial infection that is sexually transmitted and can infect the genitals, rectum, and throat.

Bacteria

Microscopic, single-celled organisms that inhabit virtually all environments, including soil, water, organic matter, and the bodies of plants and animals.

Ectopic Pregnancy

A pregnancy in which the fertilized ovum is implanted in any tissue other than the uterine wall. Most ectopic pregnancies occur in the fallopian tubes. Also known as a tubal pregnancy.

Vagina

In females, a flexible, muscular organ that begins between the legs and extends diagonally toward the small of the back. It encompasses the penis during sexual intercourse and is the pathway (birth canal) through which an infant is born.