Record the sale of net assets on the books of crow company

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Reference no: EM13951394

Asset versus stock acquisition. Bart Company is contemplating the acquisition of the net assets of Crow Company for $800,000 cash. To complete the transaction, acquisition costs are $15,000. The balance sheet of Crow Company on the purchase date is as follows:

Crow Company Balance Sheet December 31, 20X1
Assets		Liabilities and Equity
Current assets .	$ 80,000	Liabilities	$100,000
Land.	50,000	Common stock ($10 par). .	100,000
Building	450,000	Paid-in capital in excess of par	150,000
Accumulated depreciation-building .	(200,000)	Retained earnings .	230,000
Equipment	300,000
Accumulated depreciation-equipment .	(100,000)
Total assets. .	$ 580,000	Total liabilities and equity .	$580,000

The following fair values have been obtained for Crow's identi?able assets and liabilities:

Current assets	$100,000
Land. .	75,000
Building .	300,000
Equipment .	275,000
Liabilities	102,000

1. Record the acquisition of the net assets of Crow Company on Bart Company's books.

2. Record the sale of the net assets on the books of Crow Company.

3. Record the acquisition of 100% of the common stock of Crow Company on Bart's books. Crow Company will remain a separate legal entity.

Reference no: EM13951394

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