Hendrie Incorporated acquired all of the assets and liabilities of Smith Corporation for $ 1,250,000 cash on 1 January. he book values and fair values of the assets of XYZ as of the date of...

Hendrie Incorporated acquired all of the assets and liabilities of Smith Corporation for $ 1,250,000 cash on 1 January. he book values and fair values of the assets of XYZ as of the date of acquisition were:In addition, XYZ had liabilities totaling $ 320,000 at the date of acquisition and a customer list estimated to have a fair value based on discounted future cash lows of $ 75,000. Required: 1. Prepare the journal entry necessary for Hendrie Incorporated to record the acquisition. 2. Prepare the journal entry necessary for Hendrie Incorporated to record the acquisition assuming the purchase price was $ 1,200,000. It was determined that the value of all of the assets wasreasonable.

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Hendrie Incorporated acquired all of the assets and liabilities of