Prepare the journal entry to record the acquisition expenses

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 35P
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  X Corp. Acquired 100% of common stock of Y Corp. X Corp. assumed acquisition expenses as follows (amounts in $)(2.5 marks)

 

 

Legal fees 50,000

 

Accounting fees 30,000

 

Travel expenses 10,000

 

Legal fees (stock issue) 20,000

 

Accounting fees (stock) 15,000

 

SEC filing fees (stock) 10,000

 

Prior to the acquisition date, $90,000 have been paid and capitalized to a deferred charges account on the balance sheet. The remaining $45,000 has not been paid or accrued.

 

Required:

 

Prepare the journal entry to record the acquisition expenses.

 

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