Maplewood Corporation purchased the net assets of West Corporation on January 2,2016 for $560,000 and also paid $20,000 in direct acquisition costs.West's balance sheet on January
1,2016 was as follows:
Fair values agree with book values except for inventory,land,and equipment,which have fair values of $400,000,$50,000 and $70,000,respectively.West has patent rights valued at $20,000.
Required:
A.Prepare Maplewood's general journal entry for the cash purchase of West's net assets.
B.Assume Maplewood Corporation purchased the net assets of West Corporation for $500,000 rather than $560,000,prepare the general journal entry.
Definitions:
Real Solutions
The set of numbers that are solutions to an equation and are not imaginary, meaning they can be plotted on the real number line.
Perfect Square Trinomial
A quadratic expression of the form \(a^2 + 2ab + b^2\), which is the squared result of a binomial (a + b)^2.
Perfect Square Trinomial
A trinomial that is the square of a binomial, having the form a^2 + 2ab + b^2 or a^2 - 2ab + b^2.
Completing the Square
A method used in algebra to solve quadratic equations by converting the equation into a perfect square trinomial form.
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