George Inc

question 10

Essay

George Inc. acquired all of the outstanding shares of Martha Limited by paying $200,000 in cash, issuing a debenture for $300,000 and issuing 10,000 common shares with a fair value of $50 each. George Inc. incurred costs of $60,000 in investigation, accounting and legal fees directly related to the acquisition. In addition, the company incurred costs of $10,000 for the issue of the debenture and another $10,000 for the issue of the additional shares.
Required:
Prepare the journal entries necessary to record the acquisition and related costs on the books of George Inc.

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Definitions:

Diagnosis

The identification of the nature and cause of something, typically a disease, by examination of symptoms and sometimes additional testing.

Complicated Grief

A prolonged, intense state of mourning that inhibits healing and adaptation after the loss of a loved one.

Extended Bereavement

Extended bereavement refers to a prolonged period of grief and mourning beyond what is considered normal, often affecting the individual's functioning and well-being.

Nonstop

Uninterrupted or continuous.