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Record the acquisition in a financial statements model

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Reference no: EM13928883

Bill Yeates acquired the business Sun Supply Co. for $275,000 cash and assumed all liabilities at the date of acquisition. Sun's books showed tangible assets of $250,000, liabilities of $10,000, and equity of $240,000. An appraiser assessed the fair market value of the tangible assets at $265,000 at the date of acquisition. Yeates's financial condition just prior to the acquisition is shown in the following statements model:

1098_264-B-A-I-A (3478).png

Required: 

a. Compute the amount of goodwill acquired. 

b. Record the acquisition in a financial statements model like the preceding one. 

c. Record the acquisition in general journal format. 

Reference no: EM13928883

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