Paul, Inc. acquired 100% of Ernie’s Inc. net assets on January 1, 2009 for $300,000 in cash and paid 10,000 for acquisition cost. The following facts relate to the acquisitions:
Land and Building, Net
Total Liabilities and Stockholders' Equity
Fair value of acquired net assets:
Land and building
In 3–5 pages, complete the following:
Determine and provide the proper accounting entry to record the subsidiary on Paul’s books on January 1, 2009 as if Ernie was dissolved.
Determine and provide the proper accounting entry to record the subsidiary on Ernie’s books on January 1, 2009 as if Ernie was dissolved.
While acquisitions are often friendly, there are numerous occasions when a party does not want to be acquired. Discuss possible defensive strategies that firms can implement to fend off a hostile takeover attempt.
Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.