The notes to a recent annual report from Weebok Corporation included the following:
During the current year, the Company acquired the assets of Sport Shoes, Inc. . . .
Assume that Weebok acquired Sport Shoes on January 5, 2010. Weebok acquired the name of the company and all of its assets for $500,000 cash. Weebok did not assume the liabilities. The transaction was closed on January 5, 2010, at which time the balance sheet of Sport Shoes reflected the following book values and an independent appraiser estimated the following market values for the assets: