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

question 43

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:

Bridge Formula

Used to determine how a truck and semi-trailer support their respective loads. Generally, if a trailer sliding bogie is moved forward, the percentage of load supported by the tractor decreases. Bridge formula is also used to determine how tractor axles are loaded when the fifth wheel position is altered. Moving a sliding fifth wheel forward takes load off the drive bogies and transfers it to the steer axle.

Sliding 5th Wheel

An adjustable coupling mechanism on a semi-trailer that allows for the repositioning of the trailer's weight distribution.

Affects

Refers to the emotional or psychological impact or influence something has on a person's feelings or emotions.

Weight-Over-Axle

Refers to the amount of weight being carried by each axle of a vehicle, critical for determining safe loading limits and avoiding overloading.