Telecom Inc Has Decided to Purchase the Shares of Intron

question 11

Essay

Telecom Inc has decided to purchase the shares of Intron Inc. for $300, 000 in Cash on July 1,2012. On the date, the balance sheets of each of these companies were as follows: On that date, the fair values of Intron's Assets and Liabilities were as follows: Assume that Intron's Assets and Liabilities were purchased instead of its shares for $300,000. Prepare the journal entry to record this purchase.

---

Definitions:

Axons

Long, slender projections of nerve cells that transmit electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Place Theory

A theory in the field of psychophysics that suggests the perception of sound depends on where each component frequency produces vibrations along the basilar membrane of the inner ear.

Frequency Theory

A theory related to hearing that suggests the brain detects the frequency of an auditory signal by the rate at which the auditory nerve fires.

Taste Sensations

The experience or perception of taste, typically categorized into basic tastes such as sweet, sour, salty, bitter, and umami.