Jackson Limited acquired a bundle of assets for a cash consideration of $200 000.The fair values of the assets on date of acquisition was as follows: Building $132 000,Furniture $88 000.The appropriate journal entry to record this acquisition is:

Question

Quizplus · Accepted Answer

The assets should be recorded at their proportionate fair values, but the total should not exceed the cash consideration paid. Thus, the building and furniture are recorded at $120,000 and $80,000 respectively, totaling $200,000.

Jackson Limited Acquired a Bundle of Assets for a Cash