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Measurement Period Adjustment with Income Effects On December 1, 2022, Placer Corporation acquired all of the assets and liabilities of Sonata Company. The acquisition generated goodwill of $60.000,000. At the date of acquisition Sonata's equipment had an estimated fair value of $40,000,000, and a 5-year life, straight-line. On March 31, 2023, new information reveals that the equipment's fair value was $49,000,000 at the date of acquisition Placer's accounting year ends on December 31, Required Prepare the journal entry or entries to record the change in valuation of Sonata's equipment on March 31, 2023, assuming the valuation change is within the measurement period, and depreciation has already been recorded through March 31. Not all drop-down answers may be required for the journal entry. If an account is not required, select "N/A" as your answer. Description Debit Credit Equipment Depreciation expense Goodwill 9000000 >>>

Measurement Period Adjustment with Income Effects On December 1, 2022, Placer Corporation acquired all of the assets and liabilities of Sonata Company. The acquisition generated goodwill of $60.000,000. At the date of acquisition Sonata's equipment had an estimated fair value of $40,000,000, and a 5-year life, straight-line. On March 31, 2023, new information reveals that the equipment's fair value was $49,000,000 at the date of acquisition Placer's accounting year ends on December 31, Required Prepare the journal entry or entries to record the change in valuation of Sonata's equipment on March 31, 2023, assuming the valuation change is within the measurement period, and depreciation has already been recorded through March 31. Not all drop-down answers may be required for the journal entry. If an account is not required, select "N/A" as your answer. Description Debit Credit Equipment Depreciation expense Goodwill 9000000 >>>

FINANCIAL ACCOUNTING
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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Measurement Period Adjustment with Income Effects On December 1, 2022, Placer Corporation acquired all of the assets and liabilities of Sonata Company. The acquisition generated goodwill of $60,000,000. At the date of acquisition, Sonata's equipment had an estimated fair value of $40,000,000, and a 5-year life, straight-line. On March 31, 2023, new information reveals that the equipment's fair value was $49,000,000 at the date of acquisition Placer's accounting year ends on December 31, Required Prepare the journal entry or entries to record the change in valuation of Sonata's equipment on March 31, 2023, assuming the valuation change is within the measurement period, and depreciation has already been recorded through March 31. Not all drop-down answers may be required for the journal entry. If an account is not required, select "N/A" as your answer. Description Debit Credit Equipment Depreciation expense Goodwill 9000000 >>>
Transcribed Image Text:Measurement Period Adjustment with Income Effects On December 1, 2022, Placer Corporation acquired all of the assets and liabilities of Sonata Company. The acquisition generated goodwill of $60,000,000. At the date of acquisition, Sonata's equipment had an estimated fair value of $40,000,000, and a 5-year life, straight-line. On March 31, 2023, new information reveals that the equipment's fair value was $49,000,000 at the date of acquisition Placer's accounting year ends on December 31, Required Prepare the journal entry or entries to record the change in valuation of Sonata's equipment on March 31, 2023, assuming the valuation change is within the measurement period, and depreciation has already been recorded through March 31. Not all drop-down answers may be required for the journal entry. If an account is not required, select "N/A" as your answer. Description Debit Credit Equipment Depreciation expense Goodwill 9000000 >>>
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