During the Current Year, Brewer Company Purchased All of the Outstanding

question 53

Essay

During the current year, Brewer Company purchased all of the outstanding common stock of Miller Inc. paying $12,000,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below:
Required:
Prepare the journal entry to record the acquisition by Brewer Company.
$\begin{array}{lrr}&\text { Book Value } & \text { Fair Value } \\\text { Accounts receivable } & \$ 1,800,000 & \$ 1,625,000 \\\text { Inventories } & 2,700,000 & 4,000,000 \\\text { Property, plant, and equipment } & 9,000,000 & 11,625,000 \\\text { Accounts payable } & 3,000,000 & 3,000,000 \\\text { Bonds payable } & 4,500,000 & 4,125,000\end{array}$

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Definitions:

Native Americans

The indigenous peoples of the Americas, encompassing a wide range of tribes, cultures, and languages existing prior to European colonization.

Servitude

Servitude is a condition in which an individual is legally bound to serve another person for a specified or indeterminate time, often with little to no personal freedom or compensation.

Emancipate

To free someone from legal, social, or political restrictions; commonly used in historical contexts to refer to the freeing of slaves.

Black Slaves

Individuals of African descent who were forcibly taken into slavery and subjected to lifetime servitude, particularly prominent in the Americas during the transatlantic slave trade.