On July 1, 2014, Brigham Corporation purchased Young Company bypaying $255,000 cash and issuing a $150,480 note payable to SteveYoung. At July 1, 2014, the balance sheet of Young Company was asfollows.

Cash

$50,160

Accounts payable

$204,570

Accounts receivable

89,890

Stockholders’ equity

235,990

Inventory

103,180

 

$440,560

Land

40,270

 

 

Buildings (net)

75,460

 

 

Equipment (net)

70,460

 

 

Trademarks

11,140

 

 

 

$440,560

 

 

The recorded amounts all approximate current values except forland (fair value of $80,380), inventory (fair value of $125,990),and trademarks (fair value of $17,016).

Prepare the July 1 entry for Brigham Corporation to record thepurchase.

 



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