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Goodwill Recognition Spur Corporation reported the following balance sheet amounts on Dece

Goodwill Recognition Spur Corporation reported the following balance sheet amounts on Dece

Goodwill Recognition

Spur Corporation reported the following balance sheet amounts on December 31, 20X1:

Balance Sheet Item

Historical Cost

Fair Value

Cash & Receivables

$ 50,000

$ 40,000

Inventory

100,000

150,000

Land

40,000

30,000

Plant & Equipment

400,000

350,000

Less: Accumulated Depreciation

(150,000)

 

Patent

 

130,000

Total Assets

$440,000

$700,000

Accounts Payable

$ 80,000

$ 85,000

Common Stock

200,000

 

Additional Paid-In Capital

20,000

 

Retained Earnings

140,000

 

Total Liabilities & Equities

$440,000

 

Required

Blanket acquired Spur Corporation’s assets and liabilities for $670,000 cash on December 31, 20X1. Give the entry that Blanket made to record the purchase.

Roshan kumar 24-Nov-2017

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