On 6/3/06, Ponex acquired 100% of Sonex's outstanding common stock. At the acquisition date, Sonex had the following account balances:
The only assets or liabilities under- or overvalued at the acquisition date were as follows:
Land-undervalued by $155,000
Patent-overvalued by $40,000
Goodwill paid for in the acquisition was calculated at $75,000.
Required:
Prepare all entries required to achieve the push-down basis of accounting.

Question

On 6/3/06, Ponex acquired 100% of Sonex's outstanding common stock. At the acquisition date, Sonex had the following account balances:
  The only assets or liabilities under- or overvalued at the acquisition date were as follows:
Land-undervalued by $155,000
Patent-overvalued by $40,000
Goodwill paid for in the acquisition was calculated at $75,000.
Required:
Prepare all entries required to achieve the push-down basis of accounting.

Quizplus · Accepted Answer

The Answer of On 6/3/06, Ponex acquired 100% of Sonex's outstanding common stock. At the acquisition date, Sonex had the following account balances:
  The only assets or liabilities under- or overvalued at the acquisition date were as follows:
Land-undervalued by $155,000
Patent-overvalued by $40,000
Goodwill paid for in the acquisition was calculated at $75,000.
Required:
Prepare all entries required to achieve the push-down basis of accounting.

On 6/3/06, Ponex Acquired 100% of Sonex's Outstanding Common Stock