(Solution) - Cost Potluck Corp acquired all of the net assets of -(2025 Original AI-Free Solution)

Paper Details

Cost Potluck Corp. acquired all of the net assets of Sauers Corp. on June 30, 2013, in an acquisition reported as a statutory merger. The fair values of Sauers Corp.'s identifiable net assets at the date of acquisition are as follows:
Tangible assets $25,000,000
Intangible assets 90,000,000
Liabilities 55,000,000
Potluck pays $100 million in cash and issues 1,500,000 shares of stock to the former owners of Sauers. Potluck's stock has a par value of $1/share. The market price of the shares at the date of acquisition, $40/ share, is used to value the shares issued. Registration fees for the stock are $750,000, and legal and consulting fees connected with the acquisition are $900,000, both paid in cash.
Required
Record the acquisition on June 30, 2013.