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Unformatted text preview: 60,000 Building 50,000 Land 20,000 Trademark 30,000 Gain on bargain purchase 10,000 Liabilities 40,000 Cash 110,000 Problem 16. (continued) In a bargain purchase, the acquisition method employs the fair value of the net identifiable assets acquired as the basis for recording the acquisition. Because this basis exceeds the amount paid, Allerton recognizes a gain on bargain purchase. This is an exception to the general rule of using the fair value of the consideration transferred as the basis for recording the combination....
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- Spring '08
- Balance Sheet, Generally Accepted Accounting Principles, $10,000, $25,000, $110,000 120,000