Telecom Inc has decided to purchase the shares of Intron Inc. for $300, 000 in Cash on July 1,2012. On the date, the balance sheets of each of these companies were as follows: On that date, the fair values of Intron's Assets and Liabilities were as follows: Assume that Intron's Assets and Liabilities were purchased instead of its shares for $300,000. Prepare the journal entry to record this purchase.

Question

Telecom Inc has decided to purchase the shares of Intron Inc. for $300, 000 in Cash on July 1,2012. On the date, the balance sheets of each of these companies were as follows:  On that date, the fair values of Intron's Assets and Liabilities were as follows:  Assume that Intron's Assets and Liabilities were purchased instead of its shares for $300,000. Prepare the journal entry to record this purchase.

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The Answer of Telecom Inc has decided to purchase the shares of Intron Inc. for $300, 000 in Cash on July 1,2012. On the date, the balance sheets of each of these companies were as follows:  On that date, the fair values of Intron's Assets and Liabilities were as follows:  Assume that Intron's Assets and Liabilities were purchased instead of its shares for $300,000. Prepare the journal entry to record this purchase.

Telecom Inc Has Decided to Purchase the Shares of Intron