Prepare allertons entry to record its acquisition of deluxe

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Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts

 

Book
Values

Fair
Values

Current assets

$        10,750

$    10,750

Building

104,250

54,950

Land

34,250

49,050

Trademark

0

37,900

Goodwill

28,000

 

Liabilities

(42,250)

(42,250)

Common stock

(100,000)

 

Retained earnings

(35,000)

 

Question 1: Prepare Allerton's entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $137,000 and $88,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM132466089

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