During the current year, Brewer Company acquired all of the outstanding common stock of Miller Incorporated paying $11,600,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: 1,425,000Inventories2,300,0003,600,000 Property, plant, and Book ValueFair ValueAccounts receivable$ 1,600,000$ equipment8,600,00011,225,000Accounts payable2,600,0002,600,000Bonds payable4,100,0003,725,000 Required: Prepare the journal entry to record the acquisition by Brewer Company. Note: 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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During the current year, Brewer Company acquired all of the outstanding common stock of Miller Incorporated paying
$11,600,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below:
1,425,000Inventories2,300,0003,600,000
Property, plant, and
Book ValueFair ValueAccounts receivable$ 1,600,000$
equipment8,600,00011,225,000Accounts payable 2,600,0002,600,000Bonds payable4,100,0003,725,000
Required:
Prepare the journal entry to record the acquisition by Brewer Company.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Transcribed Image Text:During the current year, Brewer Company acquired all of the outstanding common stock of Miller Incorporated paying $11,600,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: 1,425,000Inventories2,300,0003,600,000 Property, plant, and Book ValueFair ValueAccounts receivable$ 1,600,000$ equipment8,600,00011,225,000Accounts payable 2,600,0002,600,000Bonds payable4,100,0003,725,000 Required: Prepare the journal entry to record the acquisition by Brewer Company. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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