world. As its business continues to grow, it has agreed to purchase the assets of Kusam Rides, a competitor. Included in the terms of sale is a requirement for Ivanhoe to maintain the accounts and notes payable of Kusam Rides. The carrying amounts and fair value of these identifiable assets and identifiable liabilities are: Carrying Amount Fair Value Inventory 30.100 21,500 Equipment 90,300 90,300 Buildings 258,000 301,000 Accounts Payable (8,600 ) (8.600 ) Notes Payable (30,100 ) (30,100 ) 339.700 374,100 The total carrying amount of $339,700 represents the net identifiable assets on Kusam Rides' financial statements. The total fair value of $374,100 represents the fair value of the net identifiable assets. Using the fair value information above, Ivanhoe agreed to purchase the business for $430,000 on January 1. Record the purchase. (Credit account ditles are automatically Indented when the amount is entered. Do not indent manualy List all debit entries before credit entries. If no entry is required, select "No Entry for the occount tieles and enter O for the amounts) Date Account Titles and Explanation Debit Credit Jan. 1

world. As its business continues to grow, it has agreed to purchase the assets of Kusam Rides, a competitor. Included in the terms of sale is a requirement for Ivanhoe to maintain the accounts and notes payable of Kusam Rides. The carrying amounts and fair value of these identifiable assets and identifiable liabilities are: Carrying Amount Fair Value Inventory 30.100 21,500 Equipment 90,300 90,300 Buildings 258,000 301,000 Accounts Payable (8,600 ) (8.600 ) Notes Payable (30,100 ) (30,100 ) 339.700 374,100 The total carrying amount of $339,700 represents the net identifiable assets on Kusam Rides' financial statements. The total fair value of $374,100 represents the fair value of the net identifiable assets. Using the fair value information above, Ivanhoe agreed to purchase the business for $430,000 on January 1. Record the purchase. (Credit account ditles are automatically Indented when the amount is entered. Do not indent manualy List all debit entries before credit entries. If no entry is required, select "No Entry for the occount tieles and enter O for the amounts) Date Account Titles and Explanation Debit Credit Jan. 1

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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