1. On July 1, 2010, Jablonski Products purchased the net assets of Duquesne Industries for $285,000 (cash of $85,000 and a short-term note payable of $200,000). The assets included current assets of $125,000, property, plant, and equipment with a fair value of $250,000 (book value of $300,000), and a trademark valued at $150,000. Jablonski assumed liabilities totaling $200,000. The entry to record the purchase would include: O A) A debit to Goodwill of $40,000 B) A credit to Gain on Purchase of $90,000 O C) A credit to Goodwill of $40,000 O D) A debit to Goodwill of $90,000 O E) A credit to Gain on Purchase of $40,000
1. On July 1, 2010, Jablonski Products purchased the net assets of Duquesne Industries for $285,000 (cash of $85,000 and a short-term note payable of $200,000). The assets included current assets of $125,000, property, plant, and equipment with a fair value of $250,000 (book value of $300,000), and a trademark valued at $150,000. Jablonski assumed liabilities totaling $200,000. The entry to record the purchase would include: O A) A debit to Goodwill of $40,000 B) A credit to Gain on Purchase of $90,000 O C) A credit to Goodwill of $40,000 O D) A debit to Goodwill of $90,000 O E) A credit to Gain on Purchase of $40,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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