In: Accounting
In a pre-2009 business combination, Acme Company acquired all of Brem Company’s assets and liabilities for cash. After the combination, Acme formally dissolved Brem. At the acquisition date, the following book and fair values were available for the Brem Company accounts:
Book Values | Fair Values | |||||
Current assets | $ | 88,200 | $ | 88,200 | ||
Equipment | 131,000 | 198,000 | ||||
Trademark | 0 | 352,000 | ||||
Liabilities | (74,200) | (74,200) | ||||
Common stock | (100,000) | |||||
Retained earnings | (45,000) | |||||
In addition, Acme paid an investment bank $30,900 cash for assistance in arranging the combination.
Solution:
Part (a) & (b) solved in seprate sheet.
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