Mans Company is about to purchase the net assets of Eagle Incorporated, which has the following balance sheet:
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Assets
|
|
|
|
Accounts receivable
|
|
$ 60,000
|
|
Inventory
|
|
100,000
|
|
Equipment
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$ 90,000
|
|
|
Accumulated depreciation
|
(50,000)
|
40,000
|
| |
|
|
|
Land and buildings
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$300,000
|
|
|
Accumulated depreciation
|
(100,000)
|
200,000
|
|
Goodwill
|
|
60,000
|
|
Total assets
|
|
$460,000
|
| |
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Bonds payable
|
|
$ 80,000
|
|
Common stock, $10 par
|
|
200,000
|
|
Paid-in capital in excess of par
|
|
100,000
|
|
Retained earnings
|
|
80,000
|
|
Total liabilities and equity
|
|
$460,000
|
Mans has secured the following fair values of Eagle's accounts:
|
Inventory
|
$130,000
|
|
Equipment
|
60,000
|
|
Land and buildings
|
260,000
|
|
Bonds payable
|
60,000
|
Acquisition costs were $20,000.
Required:
Record the entries for the purchase of the net assets of Eagle by Mans (statutory merger) at the following cash prices: