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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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.
Debit
Credit
To record the business combination
+
+
+
+
+
+
+
+
+
+
To record the asset acquisition
b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition.
Credit
Debit
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09308bb6-1136-428b-a51a-16c7742adb9a%2F6ed8c281-0326-4ce5-9f03-b953ec3f8192%2F2ifeqr_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Debit
Credit
To record the business combination
+
+
+
+
+
+
+
+
+
+
To record the asset acquisition
b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition.
Credit
Debit
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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