During the current year, Brewer Company acquired all of the outstanding common s

Question

During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,500,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: Book Value Fair Value Accounts receivable $ 1,550,000 $ 1,375,000 Inventories 2,200,000 3,500,000 Property, plant, and equipment 8,500,000 11,125,000 Accounts payable 2,500,000 2,500,000 Bonds payable 4,000,000 3,625,000

Required: Prepare the journal entry to record the acquisition by Brewer Company. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

General Journal Debit Credit Accounts receivable $1,375,000 Inventory $3,500,000 Property, plant, and equipment $11,125,000 Goodwill $1,625,000 Accounts payable $2,500,000 Bonds payable $3,625,000 Cash $11,500,000

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