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.

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Definitions:

Channel

The medium through which a message is sent.

Noise

Unwanted or distracting sounds, but in communication theory, it also refers to any interference that distorts or hinders the transmission of a message.

Compromise

An agreement or a settlement of a dispute reached by each side making concessions.

Transmit

The act of sending or conveying information, signals, or data from one person, device, or place to another.