Saveed Corporation purchased the net assets of Penny Inc.on January 2,2013 for $1,690,000 cash and also paid $15,000 in direct acquisition costs.Penny dissolved as of the date of the acquisition.Penny's balance sheet on January 2,2013 was as follows:
Fair values agree with book values except for inventory,land,and equipment,which have fair values of $640,000,$140,000 and $230,000,respectively.Penny has customer contracts valued at $20,000.
Required:
Prepare Saveed's general journal entry for the cash purchase of Penny's net assets.
Definitions:
Delusions
Beliefs that are maintained strongly even when there is overwhelming evidence proving them wrong.
Coronation
The ceremony of crowning a sovereign or a monarch, symbolizing the official investiture of royal authority.
Cyprus
An island country in the Eastern Mediterranean, known for its rich historical and cultural heritage as well as its strategic geopolitical location.
Dopamine
A neurotransmitter involved in controlling movement and posture, as well as modulating mood, reward, and addiction.
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