Business Combination Versus Asset Acquisition Haley Corporation pays $3,900.000 in cash to acquire assets from Jaxon Inc.. as follows: Fair Value $1,800,000 1.260,000 540,000 Machinery and equipment Developed technology (limited-life) Customer lists (limited-life) In addition, Haley pays $100.000 in cash for legal and advisory costs connected with the acquisition. Required Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Prepare the journal entry to record the acquisition, assuming it qualifies as a business combination. Credit Machinery and equipment Developed technology Customer lists Merger expenses Goodwill Cash To record the business.combination Debit 1,800,000 Machinery and equipment Developed technology Customer lists To record the asset acquisition 1,260,000 540,000 100.000 300.000 0 0 0 0 0 0 b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition. Debit Credit 0 4,000,000 0 0

Business Combination Versus Asset Acquisition Haley Corporation pays $3,900.000 in cash to acquire assets from Jaxon Inc.. as follows: Fair Value $1,800,000 1.260,000 540,000 Machinery and equipment Developed technology (limited-life) Customer lists (limited-life) In addition, Haley pays $100.000 in cash for legal and advisory costs connected with the acquisition. Required Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Prepare the journal entry to record the acquisition, assuming it qualifies as a business combination. Credit Machinery and equipment Developed technology Customer lists Merger expenses Goodwill Cash To record the business.combination Debit 1,800,000 Machinery and equipment Developed technology Customer lists To record the asset acquisition 1,260,000 540,000 100.000 300.000 0 0 0 0 0 0 b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition. Debit Credit 0 4,000,000 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Wendy Marvel sold $260,000 of its inventory to Carla during 2021 for $400,000. Carla sold $300,000 of this merchandise in 2021 with the remainder to be disposed of during 2022. Assume Wendy Marvel owns 35% of Carla and has the ability to exert significant influence over Carla. What journal entry will be recorded at the end of 2021 to defer the recognition of the investor's share of the intra- entity gross profits? A) Equity in Carla B) C) D) Investment in Carla Investment in Carla Equity in Carla Equity in Carla Investment in Carla Investment in Carla Equity in Carla $35,000 $35,000 $12,250 $12,250 35,000 $35,000 $12,250 $12,250
hrl.3 answer must be in proper format or i will give down vote
Topic: Uni X U2_AS i Topic: Uni X M Question X M Question x M Question √x ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https% 253A%252F%252Flms.mheducation.com%252Fmghmiddle Complete this question by entering your answers in the tabs below. Required 1 Required 2 F2 Moab Incorporated manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. a. Moab Incorporated sold a machine that it used to make computerized gadgets for $30,600 cash. It originally bought the machine for $21,400 three years ago and has taken $8,000 in depreciation. b. Moab Incorporated held stock in ABC Corporation, which had a value of $23,000 at the beginning of the year. That same stock had a value of $26,230 at the end of the year. c. Moab Incorporated sold some of its inventory for $9,200…