Grabber Industries Purchased the Net Assets of Easy Company for $1,300,000,comprised

Essay

Grabber Industries purchased the net assets of Easy Company for $1,300,000,comprised of $1,200,000 of cash and a contingent performance condition of $100,000.A schedule of the net assets of Easy Company,as recorded on Easy Company's books at the time of the acquisition,is as follows:


The following schedule shows the differences between the recorded costs and market values of the assets of Easy Company at the date of the acquisition:

Prepare the journal entry to record this acquisition using the acquisition method prescribed by SFAS 141R,,"Business Combinations."