On 8/5/06 Pellax acquired 100% of Sellax's outstanding common stock. At the acquisition date, Sellax had the following account balances:
The only assets or liabilities under- or overvalued at the acquisition date were as follows:
Building-undervalued by $250,000
Inventory-overvalued by $30,000
Goodwill paid for in the acquisition was calculated at $320,000.
Required:
Prepare all entries required to achieve the push-down basis of accounting.

Question

On 8/5/06 Pellax acquired 100% of Sellax's outstanding common stock. At the acquisition date, Sellax had the following account balances:
  The only assets or liabilities under- or overvalued at the acquisition date were as follows:
Building-undervalued by $250,000
Inventory-overvalued by $30,000
Goodwill paid for in the acquisition was calculated at $320,000.
Required:
Prepare all entries required to achieve the push-down basis of accounting.

Quizplus · Accepted Answer

The Answer of On 8/5/06 Pellax acquired 100% of Sellax's outstanding common stock. At the acquisition date, Sellax had the following account balances:
  The only assets or liabilities under- or overvalued at the acquisition date were as follows:
Building-undervalued by $250,000
Inventory-overvalued by $30,000
Goodwill paid for in the acquisition was calculated at $320,000.
Required:
Prepare all entries required to achieve the push-down basis of accounting.

On 8/5/06 Pellax Acquired 100% of Sellax's Outstanding Common Stock