Cally Company owns current assets with a market value of $5,000,000 and plant and equipment with a market value of $40,000,000. It has liabilities valued at $35,000,000. It also has unreported brand names valued at $3,000,000. Breaker Corporation buys Cally's assets and liabilities for $50,000,000 in cash.
Required
Prepare the journal entry Breaker makes to record the acquisition.

Question

Quizplus · Accepted Answer

The Answer of Cally Company owns current assets with a market value of $5,000,000 and plant and equipment with a market value of $40,000,000. It has liabilities valued at $35,000,000. It also has unreported brand names valued at $3,000,000. Breaker Corporation buys Cally's assets and liabilities for $50,000,000 in cash.
Required
Prepare the journal entry Breaker makes to record the acquisition.

Cally Company Owns Current Assets with a Market Value of $5,000,000