Intangibles and a Business Acquisition
Buyer Company purchased Target Company for $800,000 cash. Target Company had total liabilities of $300,000. Buyer Company’s assessment of the fair values it obtained when it purchased Target Company is as follows:
|
Cash |
$100,000 |
|
Inventory |
50,000 |
|
In process R&D |
500,000 |
|
Assembled workforce |
120,000 |
Make the journal entry necessary to record this business acquisition.