$ 10,000 40,000 200,000 20,000 $270,000 $ 30,000 100,000 Cash Accounts payable Notes payable Inventory Property, plant, and equipment Patent Shareholders' equity 140,000 $270,000 On January 2, 2019, Paul Company purchased Marino by acquiring all its outstanding shares for $300,000 cash. On that date, the fair value of the inventory was $30,000, and the fair value of the equipment was $240,000. In addition, the fair value of a previously unrecorded customer list was $25,000. For all other amounts, the book value of January 1, 2019, equaled fair value.

$ 10,000 40,000 200,000 20,000 $270,000 $ 30,000 100,000 Cash Accounts payable Notes payable Inventory Property, plant, and equipment Patent Shareholders' equity 140,000 $270,000 On January 2, 2019, Paul Company purchased Marino by acquiring all its outstanding shares for $300,000 cash. On that date, the fair value of the inventory was $30,000, and the fair value of the equipment was $240,000. In addition, the fair value of a previously unrecorded customer list was $25,000. For all other amounts, the book value of January 1, 2019, equaled fair value.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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