Grand Champion Inc. purchased America’s Sweethearts Corporation on January’ 1, 2016. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value):Cash ……………$...

Grand Champion Inc. purchased America’s Sweethearts Corporation on January’ 1, 2016. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value): Cash ……………$ 62,000 Accounts receivable ……..13 8,000 Inventory ………… 185,000 Property, plant, and equipment …. 300,000 Patent ………….. 65,000 Accounts payable ………. 200,000 Notes payable ………… 325,000 Grand Champion paid $900,000 for America’s Sweethearts. Record the purchase by Grand Champion. View Solution:

Grand Champion Inc purchased America s Sweethearts Corporation on January 1