Sontag Corporation’s net assets have fair values as described below.Fair ValueMarketable securities $100,000Land 800,000Buildings 500,000Equipment 300,000Other net assets 200,000The Pratt...

Sontag Corporation’s net assets have fair values as described below. Fair Value Marketable securities $100,000 Land 800,000 Buildings 500,000 Equipment 300,000 Other net assets 200,000 The Pratt Company pays $3,000,000 for Sontag Corporation, and records the acquisition as a statutory merger. Pratt Company determines that identifiable intangibles valued at $1,300,000, not previously reported on Sontag’s books, also are recognized as acquired assets. Required a. Prepare a schedule to calculate the gain on acquisition. b. Prepare Pratt’s journal entry to record the merger. View Solution:

Sontag Corporation s net assets have fair values as described below Fair