Prepare the journal entry organic juices makes

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Question - Merger - Organic Juices, Inc. acquires Healthy Snax Corporation for $40 million in cash, in a merger. Healthy Snax' balance sheet at the date of acquisition is as follows (in millions):

Current assets

$8

Current liabilities

$9.6

Plant and equipment

52

Long-term debt

28.8

Intangible assets

4

Capital stock

14.4

 

 

Retained earnings

19.2

 

 

Treasury stock

(8)

Total assets

$64

Total liabilities and equity

$64

A consulting firm values Healthy Snax' plant and equipment at $32 million and its intangibles at $20 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value.

Required - Prepare the journal entry Organic Juices makes to record its acquisition of Healthy Snax. Enter answers in millions. Enter answers using decimal points, when applicable.

Reference no: EM133088293

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