Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 16

Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2013, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts:

Prepare Allerton's entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts:
(1) $145,000
(2) $110,000