On November 30, 2019, Pronto Corporation acquired all of the assets and liabilities of Slipup Company. The acquisition generated goodwill of $30,000,000. At the date of acquisition, Slipup's equipment had an estimated fair value of $14,000,000, and a 5-year life, straight-line. On June 30, 2020, new information reveals that the equipment's fair value was $35,000,000 at the date of acquisition. Pronto's accounting year ends on December 31.
Required
Prepare the journal entry or entries to record the change in valuation of Slipup's equipment on March 1, 2020, assuming the valuation change is within the measurement period, and depreciation has already been recorded through June 30.

Question

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The Answer of On November 30, 2019, Pronto Corporation acquired all of the assets and liabilities of Slipup Company. The acquisition generated goodwill of $30,000,000. At the date of acquisition, Slipup's equipment had an estimated fair value of $14,000,000, and a 5-year life, straight-line. On June 30, 2020, new information reveals that the equipment's fair value was $35,000,000 at the date of acquisition. Pronto's accounting year ends on December 31.
Required
Prepare the journal entry or entries to record the change in valuation of Slipup's equipment on March 1, 2020, assuming the valuation change is within the measurement period, and depreciation has already been recorded through June 30.

On November 30, 2019, Pronto Corporation Acquired All of the Assets