Bigga Corporation Purchased the Net Assets of Petit, Inc

question 27

Essay

Bigga Corporation purchased the net assets of Petit, Inc. on January 2, 2013 for $380,000 cash and also paid $15,000 in direct acquisition costs. Petit, Inc. was dissolved on the date of the acquisition. Petit'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 $260,000, $35,000 and $35,000, respectively. Petit has patent rights with a fair value of $20,000.
Required:
Prepare Bigga's general journal entry for the cash purchase of Petit's net assets.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Cognitive

Refers to processes related to thinking, knowing, remembering, and communicating.

Behavioral

Relating to or concerned with the actions or activities of living organisms towards their environment.

Dream Interpretation

The process of assigning meaning to dreams, often based on the belief that dreams can reveal hidden truths, desires, or psychodynamic processes.