Reference no: EM132488097

Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2015, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:

                                        Book Values                         Fair Values

Current assets                $46,750                       $46,750

Building                         100,750                          57,850

Land                            15,750                               35,350

Trademark                      0                                    38,000

Goodwill                      23,000                                  ?

Liabilities                       (51,250)                          (51,250)

Common stock (100,000)

Retained earnings (35,000)

Question 1: Make Allerton's entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Option (1) $165,500.

Option (2) $102,500.