Born Corporation agrees to acquire the net assets of Wren Corporation on January 1, 2015.Wren has…

 
   

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Born Corporation agrees to acquire the net assets of Wren Corporation on January 1, 2015.Wren has the following balance sheet on the date of acquisition: An appraiser determines that in-process R&D exists and has an estimated value of $20,000. The appraisal indicates that the following assets have fair values that differ from their book values: Fair Value Inventory…………………………………….$ 98,000 Equipment……………………………………340,000 Trademark……………………………………..30,000 Required Use value analysis to prepare the entry on the books of Born Corporation to acquire the net assets of Wren Corporation under each of the following purchase price scenarios: 1. Purchase price is $540,000. 2. Purchase price is $350,000. View Solution:
Born Corporation agrees to acquire the net assets of Wren