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
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Transcribed Image Text: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
$16 Current liabilities
Plant and equipment 104
Intangible assets 8
Total assets
Long-term debt
Capital stock
Retained earnings
Treasury stock
$19.2
57.6
28.8
38.4
(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.
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.
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