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The Byer Company Purchased the Cellar Company for $550,000 Cash

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The Byer Company purchased the Cellar Company for $550,000 cash. Cellar's assets had been appraised at $560,000. At the time of sale Cellar's accounting records showed total assets of $490,000, liabilities of $80,000 and equity of $410,000. How would the purchase affect Byer's financial statements? The Byer Company purchased the Cellar Company for $550,000 cash. Cellar's assets had been appraised at $560,000. At the time of sale Cellar's accounting records showed total assets of $490,000, liabilities of $80,000 and equity of $410,000. How would the purchase affect Byer's financial statements?

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