Question 1:A1, A3, B1, C1, C3On Dec 31, 2019, Jalal Corporation acquired all the net assets ofSalma Corporation directly from the owner for $300,000 cash,in a business combination. Jalal paid legal fees of $50,000 inconnection with the combination.Salma's Balance sheet prior to the business combination showsthe following:Current assetsPlant assets (net)Intangible assets (net)Total AssetsCurrent liabilitiesLong-term debtTotal liabilitiesAssetsSalma Company (Combine)Balance Sheet (prior to business combination)December 31,2019CarryingAmountsstock,$ 20,000200,00070,000$ 290,000Liabilities and Stockholder's Equity$ 50,000100,000$ 150,000$1Common100,000equityTotal liabilities and290,000TotalSparCurrent FairValues$ 40,000230,00090,000S 360,000$ 50,000130,000$ 180,00040,000stockhoders'equitySstockholders'Instruction: Prepare journal entries on December 31, 2019, forJalal Corporation to record the business combination with SalmaCompany.

Jalal is Acquirer in given questionSalma is Acquiree in given questionBusiness Coupling a deal,…

Question 1: A1, A3, B1, C1, C3 On Dec 31, 2019, Jalal Corporation acquired all the net assets of Salma Corporation directly from the owner for $300,000 cash, in a business combination. Jalal paid legal fees of $50,000 in connection with the combination. Salma's Balance sheet prior to the business combination shows the following:

Question 1: A1, A3, B1, C1, C3 On Dec 31, 2019, Jalal Corporation acquired all the net assets of Salma Corporation directly from the owner for $300,000 cash, in a business combination. Jalal paid legal fees of $50,000 in connection with the combination. Salma's Balance sheet prior to the business combination shows the following:

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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