Organic Juices, Inc. acquires Healthy Snax Corporation for $80 million in cash, in a merger. Healthy Snax' balance sheet at the date of acquisition is as follows (in millions): Current assets Plant and equipment 104 Long-term debt Intangible assets $16 Current liabilities Total assets 8 Capital stock Retained earnings Treasury stock $19.2 57.6 28.8 (16) $128 Total liabilities and equity $128 A consulting firm values Healthy Snax' plant and equipment at $64 million and its intangibles at $40 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value. 38.4 Required: Prepare the journal entry Organic Juices makes to record its acquisition of Healthy Snax. Enter answers in millions. Enter answers using decimal points, when applicable.
Organic Juices, Inc. acquires Healthy Snax Corporation for $80 million in cash, in a merger. Healthy Snax' balance sheet at the date of acquisition is as follows (in millions): Current assets Plant and equipment 104 Long-term debt Intangible assets $16 Current liabilities Total assets 8 Capital stock Retained earnings Treasury stock $19.2 57.6 28.8 (16) $128 Total liabilities and equity $128 A consulting firm values Healthy Snax' plant and equipment at $64 million and its intangibles at $40 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value. 38.4 Required: Prepare the journal entry Organic Juices makes to record its acquisition of Healthy Snax. Enter answers in millions. Enter answers using decimal points, when applicable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sh27
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education