Balance Sheet $ 300,000 600,000 $ 300,000 500,000 50,000 1,300,000 Current assets Current liabilities . Equipment (net) Plant assets (net). Goodwill Bonds payable Common stock ($1 par). Paid-in capital in excess of par 1,600,000 300,000 Retained earnings . Total liabilities and equity 650,000 Total assets.. $2,800,000 $2,800,000 Summary Income Statement Sales revenue $800,000 Cost of goods sold. Gross profit .. Operating expenses Depreciation expense 520,000 $280,000 $150,000 80,000 230,000 Net income $ 50,000
Avery Company acquires the net assets of Iowa Company on July 1, 2015. The net assets acquired include plant assets that are provisionally estimated to have a fair value of $600,000 with a 10-year usable life and no salvage value.
In March 2016, the final estimated fair value of the acquired plant assets is $700,000 with no change in the estimate of useful life or salvage value.
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