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Question: Allerton Company acquires all of Deluxe Company’


Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2021, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:



Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash -1

Prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts:
a. $145,000.
b. $110,000.

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