Pony Acquired Spur Corporation's Assets and Liabilities for $500,000 Cash

question 22

Essay

Pony acquired Spur Corporation's assets and liabilities for $500,000 cash on December 31,2013.Spur dissolved on the date of the acquisition.Spur's balance sheet and related fair values are shown as of that date,below.
Required: Prepare the journal entry recorded by Pony as a result of this transaction.

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Definitions:

Ceramic Base

A non-conducting, heat-resistant base used in electronic components and devices, made from ceramic materials.

Thick Film

A technology used in the manufacture of electronic devices and circuits, where materials are deposited in thin layers on a substrate to create components with specific electrical properties.

Electrical Schematics

Diagrams that represent the components and connections in an electrical circuit, using standardized symbols to facilitate understanding and troubleshooting.

Rheostat

A variable resistor.