Vander Company acquired the net assets of Howe Company for $190,000. Vander issued 5000 shares of...

Vander Company acquired the net assets of Howe Company for $190,000. Vander issued 5000 shares of its $1 par common stock to complete the transaction. Vander's stock was selling for $38 a share on the date of acquisition. On the date of acquisition Howe reported the following:

	Cost	Book Value	Fair Value
Cash	$ 65,000	$ 65,000	$ 65,000
Inventory	50,000	50,000	55,000
Equipment	95,000	70,000	85,000
Accounts Payable	35,000	35,000	35,000

Prepare the journal entry that Vander Company recorded on the date of the acquisition of Howe’s net assets

Expert Solution

ekkarill92 answered 11 months ago

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