Mars Inc. acquired all of Wrigley Co.'s voting stock. Mars incurred the following costs for the acquisition (dollar amounts in thousands):
In addition to the assets and liabilities already reported, Wrigley has the following previously unrecorded intangible assets that meet ASC Topic 805 requirements for capitalization (in thousands):
$$\begin{array} { | l | c | }
\hline { \text { Intangible Asset } } & \text { Fair Value } \
\hline \text { Brand names } & \$ 5,000,000 \
\hline \text { Secret formulas } & 7,000,000 \
\hline
\end{array}$$ Required a. Prepare the journal entry Mars made to record the acquisition.
b. Prepare a working paper to consolidate the balance sheet accounts of Mars and Wrigley at the date of acquisition.

Question

Mars Inc. acquired all of Wrigley Co.'s voting stock. Mars incurred the following costs for the acquisition (dollar amounts in thousands):
  In addition to the assets and liabilities already reported, Wrigley has the following previously unrecorded intangible assets that meet ASC Topic 805 requirements for capitalization (in thousands):
 $$\begin{array} { | l | c | } 
\hline { \text { Intangible Asset } } & \text { Fair Value } \
\hline \text { Brand names } & \$ 5,000,000 \
\hline \text { Secret formulas } & 7,000,000 \
\hline
\end{array}$$ Required a. Prepare the journal entry Mars made to record the acquisition.
b. Prepare a working paper to consolidate the balance sheet accounts of Mars and Wrigley at the date of acquisition.

Quizplus · Accepted Answer

The Answer of Mars Inc. acquired all of Wrigley Co.'s voting stock. Mars incurred the following costs for the acquisition (dollar amounts in thousands):
  In addition to the assets and liabilities already reported, Wrigley has the following previously unrecorded intangible assets that meet ASC Topic 805 requirements for capitalization (in thousands):
 $$\begin{array} { | l | c | } 
\hline { \text { Intangible Asset } } & \text { Fair Value } \
\hline \text { Brand names } & \$ 5,000,000 \
\hline \text { Secret formulas } & 7,000,000 \
\hline
\end{array}$$ Required a. Prepare the journal entry Mars made to record the acquisition.
b. Prepare a working paper to consolidate the balance sheet accounts of Mars and Wrigley at the date of acquisition.

Mars Inc Acquired All of Wrigley Co Required A