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Brass Corporation agrees to acquire the net assets of Warn Corporation on January 1, 2011. Warn has the following balance sheet on the date of...

Brass Corporation agrees to acquire the net assets of Warn Corporation on January 1, 2011. Warn has the following balance sheet on the date of acquisition:

Assets Liabilities
Accounts Receivable $79,000 Current Liabilities $145,000
Inventory $112,000 Bonds Payable $100,000
Other Currnt Assets $55,000 Common Stock $200,000
Equipment (net) $294,000 Paid-in capital in $50,000
excess of par Trademark $30,000 Retained Earnings $75,000
Total Assets $570,000 Total L & E $570,000

An appraiser determines that in-process R&D exists and has an estimated value of $14,000. The appraisal indicates that the following assets have fair values that differ from their book values:

Inventory $120,000
Equipment $340,000
Trademark $30,000

Use value analysis to prepare the entry on the books of Brass Corporation to acquire the net assets of Warn Corporation under ach of the following purchase scenarios: 1. Purchase price is $550,000 and 2. Purchase price is $350,000.
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Accounting -8091414.xls

Ans.
BRASS CORPORATION
Scenario 1
Journal
Date Description PR Debit Accounts Receivable
Inventory
Other Currnt Assets
Equipment
Trademark
R&D
Current Liabilities
Bonds Payable
Warn Corporation...

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