1-37 - P137 Business Combination $55 * 9000 = $495,000...

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Unformatted text preview: P137 Business Combination $55 * 9000 = $495,000 Differential =495,000 100%(100,000+150,00071,200) = 316,200 BV Allowance 600 Inventory P&E net Goodwill Total Journal entry to record acquisition of TootToot Tuba net assets under purchase treatment: Journal entry to record acquisition of Toot-Toot Tuba net assets under purchase treatment: Cash Accounts Receivable Inventory Plant and Equipment Other Assets Goodwill Allowance for Uncollectibles Accounts Payable Notes Payable Mortgage Payable Bonds Payable Capital Stock ($10 par) Premium on Capital Stock 300 17,000 35,000 500,000 25,800 86,500 FMV 1400 35,000 500,000 Differential (800) (43,500) 274,000 86,500 316,200 78,500 226,000 1,400 8,200 10,000 50,000 100,000 90,000 405,000 ...
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