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 + ◆ + + + ♦ Machinery and equipment + Developed technology ♦ Customer lists ◆ + To record the asset acquisition Debit 1800000 1260000 540000 100,000 b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition. Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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 + ◆ + + + ♦ Machinery and equipment + Developed technology ♦ Customer lists ◆ + To record the asset acquisition Debit 1800000 1260000 540000 100,000 b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition. Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
+
Machinery and equipment
Developed technology
Customer lists
To record the asset acquisition
Debit
1800000
1260000
540000
100,000
b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition.
Debit
Credit
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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