On January 1, 2013, New Ltd. acquired the following assets and liabilities from Daylight Ltd.:In exchange for these assets and liabilities, New issued 100,000 shares that had been issued for $1.20...

On January 1, 2013, New Ltd. acquired the following assets and liabilities from Daylight Ltd.: In exchange for these assets and liabilities, New issued 100,000 shares that had been issued for $1.20 per share but at January 1, 2013, had a fair value of $6.50 per share. Required (a) Prepare the journal entries in the records of New to account for the acquisition of the assets and liabilities of Daylight. (b) Prepare the journal entries assuming that the fair value of New shares was $6 per share. View Solution:

On January 1 2013 New Ltd acquired the following assets