Assets Liabilities and Equity
Current Assets: Accounts Payable $40,000
Accounts Receivable $50,000 Stockholders' Equity:
Inventory $300,000 Common stock $40,000
Noncurrent assets: Paid-in capital in $110,000
Land $20,000 excess of par
Building (net) $70,000 Retained Earnings $250,000
Total Assets $440,000 Total L & E $440,000
The following fair values differ from existing book values:
Record the acquisition entry for Kiln Corporation that would result under each of the alternative offers. Value analysis is suggested.
1. Kiln Corporation issues 20,000 of its $10 par common stock with a fair value of $25 per share for the net assets of Williams Incorporated.
2. Kiln Corporation pays $385,000 in cash.
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