Solution-Record the journal entry of the acquisition

Record the journal entry of the acquisition

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Reference no: EM132762976

Question: Company Y acquired Company Z on January 1, 2019. Company Z had the following items on its books: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $800,000; Land $350,000; Liabilities $650,000; Common Stock $500,000; Retained earnings $305,000. The fair value of the asset items are: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $1,400,000; Land $550,000.

Record the journal entry of this acquisition if Company Y offered Company Z

1) $1.8 million and

2) $1.4 million.

Reference no: EM132762976

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Record the journal entry of the acquisition

Reference no: EM132762976

Reference no: EM132762976

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