Additional Problem 3 (Part Level Submission) On January 1, 2017, AMI Corporation

Question

Additional Problem 3 (Part Level Submission) On January 1, 2017, AMI Corporation purchased the non-cash net assets of Grouper Ltd. for $8,545,500. Following is the statement of financial position of Grouper Ltd. from the company's year-end the previous day Ltd. As at r 31, 2016 Cash $670,000 562,000 2,560,000 2,120,000 2,600,000 $8,512,000 362,000 2,570,000 5,580,000 $8,512,000 Inventory Property, plant, and equipment (net) Common shares Retained earnings As part of the negotiations, AMI and Grouper agreed on the following fair values for the items on Grouper's statement of financial position: Accounts receivable Inventory Property, plant, and equipment $560,700 2,335,000 1,935,000 3,850,000 229,200 Accounts payable

Explanation / Answer

Account title and explanation Debit credit Accounts receivable 560700 Inventory 2335000 Property ,plant and equipment 1935000 Land 3850000 Goodwill (balancing figure) 94000 Accounts payable 229200 cash 8545500

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