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Washburn Enterprises Acquired Ibarra Company for $850,000 December 31,2014

Question 28

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Washburn Enterprises acquired Ibarra Company for $850,000 December 31,2014.This amount exceeded the recorded value of Ibarra Company's net assets by $250,000 on the acquisition date.The entire excess of cost over the book value of the net assets related to a piece of equipment owned by Ibarra that had a remaining life of five years as of the acquisition date.The companies reported the following amounts for the 2013 and 2014:
Washburn Enterprises acquired Ibarra Company for $850,000 December 31,2014.This amount exceeded the recorded value of Ibarra Company's net assets by $250,000 on the acquisition date.The entire excess of cost over the book value of the net assets related to a piece of equipment owned by Ibarra that had a remaining life of five years as of the acquisition date.The companies reported the following amounts for the 2013 and 2014: Prepare the pro forma information for this acquisition required by ASC Topic 850.
Prepare the pro forma information for this acquisition required by ASC Topic 850.

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