Ivanhoe Downhill Bikes manufactures high quality custom mountain bikes which are sold to some of the best professional riders in the world. As its business continues to grow, it has agreed to purchase the assets of Kusam Rides, a competitor. Included in the terms of sale is a requirement for Ivanhoe to maintain the accounts and notes payable of Kusam Rides. The carrying amounts and fair value of these identifiable assets and identifiable liabilities are: Carrying Amount Fair Value Inventory 30,100 21.500 Equipment 90,300 90,300 Buildings 258,000 301,000 Accounts Payable (8.600 ) (8,600 ) Notes Payable (30,100 ) (30,100 ) 339.700 374,100 The total carrying amount of $339,700 represents the net identifiable assets on Kusam Rides' financial statements. The total fair value of $374,100 represents the fair value of the net identifable assets. Using the fair value information above, Ivanhoe agreed to purchase the business for $430,.000 on January 1. Record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manualy List all debit entries before credit entries. If no entry is required, seiect "No Entry" for the account titles and enter O for the amounts)

Ivanhoe Downhill Bikes manufactures high quality custom mountain bikes which are sold to some of the best professional riders in the world. As its business continues to grow, it has agreed to purchase the assets of Kusam Rides, a competitor. Included in the terms of sale is a requirement for Ivanhoe to maintain the accounts and notes payable of Kusam Rides. The carrying amounts and fair value of these identifiable assets and identifiable liabilities are: Carrying Amount Fair Value Inventory 30,100 21.500 Equipment 90,300 90,300 Buildings 258,000 301,000 Accounts Payable (8.600 ) (8,600 ) Notes Payable (30,100 ) (30,100 ) 339.700 374,100 The total carrying amount of $339,700 represents the net identifiable assets on Kusam Rides' financial statements. The total fair value of $374,100 represents the fair value of the net identifable assets. Using the fair value information above, Ivanhoe agreed to purchase the business for $430,.000 on January 1. Record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manualy List all debit entries before credit entries. If no entry is required, seiect "No Entry" for the account titles and enter O for the amounts)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter19: Lease Financing

Section: Chapter Questions

Problem 1P: Reynolds Construction (RC) needs a piece of equipment that costs 200. RC can either lease the...

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