On august 15 2013 dch acquired sparky inc paying 7400000


1. On August 15, 2013, DCH acquired Sparky Inc. paying $7,400,000 cash. The book values and fair values of Sparkys' assets and liabilities are listed below:

Accounts receivable

Book Value: $1,080,000

Fair Value: $ 975,000

Inventories

Book Value: 1,620,000

Fair Value: 2,400,000

Property, plant, and equipment

Book Value: 5,400,000

Fair Value: 6,975,000

Accounts payable

Book Value: 1,800,000

Fair Value: 1,800,000

Bonds payable

Book Value: 2,700,000

Fair Value: 2,475,000

Required:

Prepare the journal entry to record the acquisition by DCH.

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Financial Accounting: On august 15 2013 dch acquired sparky inc paying 7400000
Reference No:- TGS02837632

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