The Following Data Pertains to Questions

question 45

Short Answer

The following data pertains to Questions
IOU Inc.purchased all of the outstanding common shares of UNI Inc.for $800,000.On the date of acquisition,UNI's assets included $2,000,000 of Inventory and Land with a Book value of $120,000.UNI also had $1,400,000 in Liabilities on that date.UNI's book values were equal to their fair market values,with the exception of the company's Land,which was estimated to have a fair market value which was $50,000 higher than its book value.
-Assuming that the acquisition was properly recorded at cost,which of the following journal entries is required to prepare Consolidated Financial Statements the day following the acquisition?

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Definitions:

Obligate Parasites

Organisms that must live on or inside another organism (host) to survive, often causing harm to the host.

Aerobes

Organisms that require oxygen to survive and grow.

Upper Respiratory Tract

The part of the respiratory system that includes the nose, nasal passages, pharynx, and larynx, through which air enters and exits the body.

Normal Flora

Microorganisms, including bacteria and fungi, that reside in or on the body without causing disease under normal conditions.