Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

Advanced Accounting

Paul, Inc. acquired 100% of Ernie’s Inc. net assets on January 1, 2009 for
$300,000 in cash and paid 10,000 for acquisition cost. The following facts
relate to the acquisitions:

Need assignment help for this question?

If you need assistance with writing your essay, we are ready to help you!

OUR PROCESS

Order

Payment

Writing

Delivery

Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality

Accounts Receivable

50,000

Inventory

80,000

Equipment, Net

50,000

Land and Building, Net

120,000

Total Assets

$300,000

Bonds Payable

90,000

Common stock

100,000

Retained earnings

110,000

Total Liabilities and Stockholders’ Equity

$300,000

Fair value of acquired net assets:

Accounts receivable

$50,000

Inventory

100,000

Equipment

30,000

Land and building

180,000

Customer list

30,000

Bonds payable

100,000

In 3–5 pages, complete the following:

  1. Determine and provide the proper accounting entry to record the subsidiary
    on Paul’s books on January 1, 2009 as if Ernie was dissolved.
  2. Determine and provide the proper accounting entry to record the subsidiary
    on Ernie’s books on January 1, 2009 as if Ernie was dissolved.
  3. While acquisitions are often friendly, there are numerous occasions when a
    party does not want to be acquired. Discuss possible defensive strategies that
    firms can implement to fend off a hostile takeover attempt.

“Order a similar paper and get 15% discount on your first order with us
Use the following coupon
“FIRST15”

Order Now