Measurement period. Avery Company acquires the net assets of Iowa Company on July 1, 2015. The net assets acquired include plant assets that are provisionally estimated to have a fair value of...

Measurement period. Avery Company acquires the net assets of Iowa Company on July 1, 2015. The net assets acquired include plant assets that are provisionally estimated to have a fair value of $600,000 with a 10-year usable life and no salvage value. Depreciation is recorded based on months in service. The remaining unallocated amount of the price paid is $300,000, which is recorded as goodwill.

At the end of 2015, Avery prepares the following statements (includes Iowa Company for the last six months):

In March 2016, the final estimated fair value of the acquired plant assets is $700,000 with no change in the estimate of useful life or salvage value.

1. Prepare any journal entries required in March 2016.

2. Prepare the revised balance sheet and income statement for 2015 that will be included in the 2016 comparative statements.