In: Accounting
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