n August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton Co. Brighton Company reported the followin matement of financial position at the time of the acquisition: Brighton Company Statement of Financial Position Equity and Liabilities Share capital- $1,350,000 $1,150,000 ordinary Assets Plant assets (ne 1) Inventory Receivables Cash Retained camnings 1,070,000 235,000 800,000 Accounts payable 587.000 422.000 Total assets $2.807.000 Total equity and liabilities $2.807.000 An appraisal indicated that the fair value of the inventory was $372,000 and the fair value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2,550,000. The recoverable amount of the division is estimated to be S

n August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton Co. Brighton Company reported the followin matement of financial position at the time of the acquisition: Brighton Company Statement of Financial Position Equity and Liabilities Share capital- $1,350,000 $1,150,000 ordinary Assets Plant assets (ne 1) Inventory Receivables Cash Retained camnings 1,070,000 235,000 800,000 Accounts payable 587.000 422.000 Total assets $2.807.000 Total equity and liabilities $2.807.000 An appraisal indicated that the fair value of the inventory was $372,000 and the fair value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2,550,000. The recoverable amount of the division is estimated to be S

Name: On August 31, 2020, Southampton Co. acquired all of the common stock
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Description: On August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton Co. Brighton Company reported the followirstatement of financial position at the time of the acquisition:Brighton Compan

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

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