TXL Puting paid $190,000 to Mare Valley Chowdh, a weekly advertising paper At theme of the...

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Answer 1

Answer #1

Journal entry in the Consolidated books
Account titles and explanation	Debit	Credit

Identifiable assets	$100,000
Goodwill	$160,000		(balancing figure)
Identifiable liabilities		$70,000
Cash		$190,000
(Identifiable net assets acquired)

Book values of the assets are ignored in a business combination. Fair value of the assets and liabilities are taken into consideration.

Answer 2

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