Pyle Company acquired all the assets of Stack. Pyle gave 10,000 shares of its $10 par value common stock (which had a market value of $25 when the business combination occurred) and $500,000 cash as consideration. For simplicity, assume that Stack's only asset was a commercial office building, which initially cost $900,000, was depreciated $200,000, and had a current value of $950,000. Pyle assumed responsibility for Stack's liabilities of $220,000.
Required:
Record the entries that would be made on each company's books as a result of this transaction.

Question

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The Answer of Pyle Company acquired all the assets of Stack. Pyle gave 10,000 shares of its $10 par value common stock (which had a market value of $25 when the business combination occurred) and $500,000 cash as consideration. For simplicity, assume that Stack's only asset was a commercial office building, which initially cost $900,000, was depreciated $200,000, and had a current value of $950,000. Pyle assumed responsibility for Stack's liabilities of $220,000.
Required:
Record the entries that would be made on each company's books as a result of this transaction.

Pyle Company Acquired All the Assets of Stack