Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

تمرين 14

Panther Company is about to acquire a 100% interest in Snake Company. Snake has identifiable net assets with book and fair values of $300,000 and $500,000, respectively. As payment, Panther will issue common stock with a fair value of $750,000. How would the transaction be recorded if the acquisition is:
a. An acquisition of net assets?
b. An acquisition of Snake's common stock and Snake remains a separate legal entity?