Samantha's Sporting Goods Had Net Assets Consisting of the Following

question 3

Essay

Samantha's Sporting Goods had net assets consisting of the following:
$\begin{array}{lll}&\text { Book Value }&\text { Fair Value }\\\text { Cash } & \$ 150,000 & \$ 150,000 \\\text { Inventory } & 820,000 & 960,000 \\\text { Building and Fixtures } & 330,000 & 310,000 \\\text { Liabilities } & (90,000) & (88,000)\end{array}$ Pedic Incorporated purchased Samantha's Sporting Goods,and immediately dissolved Samantha's as a separate legal entity.
Requirement 1: If Samantha's was purchased for $1,000,000 cash,prepare the entry recorded by Pedic.
Requirement 2: If Samantha's was purchased for $1,500,000 cash,prepare the entry recorded by Pedic.

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Definitions:

Shared Values

Core beliefs or principles that are collectively held and guide the behavior and decision-making within an organization or society.

Motivational Mechanism

The process or system by which motivation is generated or regulated within individuals or groups.

Agency Law

The area of law that deals with the relationship between agents and principals, including the duties and rights that arise from such relationships.

State Laws

Statutes and regulations enacted by state legislatures that govern matters not exclusively reserved to the federal government.