On December 1, 2021. LETSGO Corporation acquired for $175,000 all the net assets of MARS Company. On the date of the combination , the carrying value of MARS Company’s identifiable net assets was $143,750. The current fair value of all identifiable net assets of MARS Company were equal to their carrying values, except for its inventories and plants assets. The current fair value of MARS Company’s inventories was $25,000 less than their carrying values, and the current fair value of MARS Company’s plant asset was $50,000 more than their carrying amount. What is the journal entry prepared by LETSGO Corporation to record the business combination?
On December 1, 2021. LETSGO Corporation acquired for $175,000 all the net assets of MARS Company. On the date of the combination , the carrying value of MARS Company’s identifiable net assets was $143,750. The current fair value of all identifiable net assets of MARS Company were equal to their carrying values, except for its inventories and plants assets. The current fair value of MARS Company’s inventories was $25,000 less than their carrying values, and the current fair value of MARS Company’s plant asset was $50,000 more than their carrying amount. What is the journal entry prepared by LETSGO Corporation to record the business combination?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 1, 2021. LETSGO Corporation acquired for $175,000 all the net assets of MARS Company. On the date of the combination , the carrying value of MARS Company’s identifiable net assets was $143,750. The current fair value of all identifiable net assets of MARS Company were equal to their carrying values, except for its inventories and plants assets. The current fair value of MARS Company’s inventories was $25,000 less than their carrying values, and the current fair value of MARS Company’s plant asset was $50,000 more than their carrying amount. What is the
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