Spur Corporation’s assets and liabilities
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Goodwill Recognition
Spur Corporation reported the following balance sheet amounts on December 31, 20X1:
Balance Sheet Item | Historical Cost | Fair Value |
Cash & Receivables | $ 50,000 | $ 40,000 |
Inventory | 100,000 | 150,000 |
Land | 40,000 | 30,000 |
Plant & Equipment | 400,000 | 350,000 |
Less: Accumulated Depreciation | (150,000) | |
Patent | 130,000 | |
Total Assets | $440,000 | $700,000 |
Accounts Payable | $ 80,000 | $ 85,000 |
Common Stock | 200,000 | |
Additional Paid-In Capital | 20,000 | |
Retained Earnings | 140,000 | |
Total Liabilities & Equities | $440,000 |
Required
Blanket acquired Spur Corporation’s assets and liabilities for $670,000 cash on December 31, 20X1. Give the entry that Blanket made to record the purchase.
10 years ago
Spur Corporation’s assets and liabilities
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