Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2021, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:     Book Values   Fair Values   Current assets $ 36,750   $ 36,750   Building   114,000     70,800   Land   16,000     29,500   Trademark   0     32,400   Goodwill   29,750     ?   Liabilities   (61,500 )   (61,500 ) Common stock   (100,000 )       Retained earnings   (35,000 )           1&2. Prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $147,000 and $81,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2021, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:

 

  Book
Values
  Fair
Values
 
Current assets $ 36,750   $ 36,750  
Building   114,000     70,800  
Land   16,000     29,500  
Trademark   0     32,400  
Goodwill   29,750     ?  
Liabilities   (61,500 )   (61,500 )
Common stock   (100,000 )      
Retained earnings   (35,000 )      
 

 

1&2. Prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $147,000 and $81,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 

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