Samantha's Sporting Goods had net assets consisting of the following:
Pedic Incorporated purchased Samantha's Sporting Goods, and immediately dissolved Samantha's as a separate legal entity.
Requirement 1: If Samantha's was purchased for $1,000,000 cash, prepare the entry recorded by Pedic.
Requirement 2: If Samantha's was purchased for $1,500,000 cash, prepare the entry recorded by Pedic.

Question

Samantha's Sporting Goods had net assets consisting of the following:
  Pedic Incorporated purchased Samantha's Sporting Goods, and immediately dissolved Samantha's as a separate legal entity.
Requirement 1: If Samantha's was purchased for $1,000,000 cash, prepare the entry recorded by Pedic.
Requirement 2: If Samantha's was purchased for $1,500,000 cash, prepare the entry recorded by Pedic.

Quizplus · Accepted Answer

The Answer of Samantha's Sporting Goods had net assets consisting of the following:
  Pedic Incorporated purchased Samantha's Sporting Goods, and immediately dissolved Samantha's as a separate legal entity.
Requirement 1: If Samantha's was purchased for $1,000,000 cash, prepare the entry recorded by Pedic.
Requirement 2: If Samantha's was purchased for $1,500,000 cash, prepare the entry recorded by Pedic.

Samantha's Sporting Goods Had Net Assets Consisting of the Following