Mans Company is about to purchase the net assets of Eagle Inc., which has the following balance sheet:
?
?
Mans has secured the following fair values of Eagle's accounts:
?
?
$$\begin{array} { l r }
\text { Inventory } & \$ 130,000 \
\text { Equipment } & 60,000 \
\text { Land and buildings } & 260,000 \
\text { Bonds payable } & 60,000
\end{array}$$ Acquisition costs were $20,000.
?
Required:
?
Record the entry for the purchase of the net assets of Eagle by Mans at the following cash prices:
?
a.$450,000
?
?
b.$310,000
?
?
c.$480,000
?

Question

Mans Company is about to purchase the net assets of Eagle Inc., which has the following balance sheet:
?
?
  Mans has secured the following fair values of Eagle's accounts:
?
?
 $$\begin{array} { l r } 
\text { Inventory } & \$ 130,000 \
\text { Equipment } & 60,000 \
\text { Land and buildings } & 260,000 \
\text { Bonds payable } & 60,000
\end{array}$$ Acquisition costs were $20,000.
?
Required:
?
Record the entry for the purchase of the net assets of Eagle by Mans at the following cash prices:
? 
a.$450,000
?
?
b.$310,000
?
?
c.$480,000
?

Quizplus · Accepted Answer

The Answer of Mans Company is about to purchase the net assets of Eagle Inc., which has the following balance sheet:
?
?
  Mans has secured the following fair values of Eagle's accounts:
?
?
 $$\begin{array} { l r } 
\text { Inventory } & \$ 130,000 \
\text { Equipment } & 60,000 \
\text { Land and buildings } & 260,000 \
\text { Bonds payable } & 60,000
\end{array}$$ Acquisition costs were $20,000.
?
Required:
?
Record the entry for the purchase of the net assets of Eagle by Mans at the following cash prices:
? 
a.$450,000
?
?
b.$310,000
?
?
c.$480,000
?

Mans Company Is About to Purchase the Net Assets of Eagle