Panda Corporation paid $2,000,000 in cash for all of Sim Corporation’s assets and liabilities in a merger. The following table shows three possible cases for the merger: Fair Value Account Case 1 Case 2 Case 3 Current assets $400,000 $100,000 $300,000 Plant assets 750,000 300,000 2,000,000 Identifiable intangible assets 900,000 200,000 800,000 Liabilities (800,000) (900,000) (1,000,000) Fair value of identifiable net assets $1,250,000 $(300,000) $2,100,000 Required In each of the above cases, prepare the journal entry Panda makes to record the acquisition. Instructions: Not all drop-down answers may be required for the journal entry in each case. If an account is not required, select "N/A" as your answer. Enter answers using all zeros (do not abbreviate to thousands). Case 1: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer Case 2: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer Case 3: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer
Panda Corporation paid $2,000,000 in cash for all of Sim Corporation’s assets and liabilities in a merger. The following table shows three possible cases for the merger: Fair Value Account Case 1 Case 2 Case 3 Current assets $400,000 $100,000 $300,000 Plant assets 750,000 300,000 2,000,000 Identifiable intangible assets 900,000 200,000 800,000 Liabilities (800,000) (900,000) (1,000,000) Fair value of identifiable net assets $1,250,000 $(300,000) $2,100,000 Required In each of the above cases, prepare the journal entry Panda makes to record the acquisition. Instructions: Not all drop-down answers may be required for the journal entry in each case. If an account is not required, select "N/A" as your answer. Enter answers using all zeros (do not abbreviate to thousands). Case 1: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer Case 2: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer Case 3: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer
Chapter7: Corporations: Reorganizations
Section: Chapter Questions
Problem 43P
Related questions
Question
Panda Corporation paid $2,000,000 in cash for all of Sim Corporation’s assets and liabilities in a merger. The following table shows three possible cases for the merger:
| Fair Value | |||
|---|---|---|---|
| Account | Case 1 | Case 2 | Case 3 |
| Current assets | $400,000 | $100,000 | $300,000 |
| Plant assets | 750,000 | 300,000 | 2,000,000 |
| Identifiable intangible assets | 900,000 | 200,000 | 800,000 |
| Liabilities | (800,000) | (900,000) | (1,000,000) |
| Fair value of identifiable net assets | $1,250,000 | $(300,000) | $2,100,000 |
Required
In each of the above cases, prepare the
Instructions:
- Not all drop-down answers may be required for the journal entry in each case. If an account is not required, select "N/A" as your answer.
- Enter answers using all zeros (do not abbreviate to thousands).
Case 1:
(in thousands)
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| Current assets | Answer
|
Answer
|
| Plant assets | Answer
|
Answer
|
| Identifiableintangibles | Answer
|
Answer
|
| Answer
|
Answer
|
Answer
|
| Liabilities | Answer
|
Answer
|
| Cash | Answer
|
Answer
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| Answer | Answer
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Answer
|
Case 2:
(in thousands)
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| Current assets | Answer
|
Answer
|
| Plant assets | Answer
|
Answer
|
| Identifiableintangibles | Answer
|
Answer
|
| Answer | Answer
|
Answer
|
| Liabilities | Answer
|
Answer
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| Cash | Answer
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Answer
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| Answer
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Answer
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Answer
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Case 3:
(in thousands)
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| Current assets | Answer
|
Answer
|
| Plant assets | Answer
|
Answer
|
| Identifiableintangibles | Answer
|
Answer
|
| Answer | Answer
|
Answer
|
| Liabilities | Answer
|
Answer
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| Cash | Answer
|
Answer
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| Answer
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Answer
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Answer
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