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:
Income
Monetary payment received for work or through investments.
Interest Rate
The fraction of a loan that incurs interest costs for the borrower, usually described as an annual percentage rate.
Utility Function
A mathematical representation of how a consumer's satisfaction or preference for goods and services is dependent on their consumption levels.
Consumption
The use of goods and services by households, affecting economic conditions and indicating economic health through consumer spending patterns.
Q6: Voluntary health and welfare organizations<br>A) may not
Q10: Under the amended Uniform Probate Code, if
Q10: When the donation of bonds is received,
Q10: If a parent company has controlling interest
Q19: If the bonds were originally issued at
Q22: If all partners are included in the
Q23: Record the following transactions for Porter Hospital,
Q24: Voluntary health and welfare organizations classify fund-raising
Q24: The material sale of inventory items by
Q55: Which of the following statements about an