Problem

Acquisition of Net AssetsSun Corporation concluded the fair value of Tender Company was $6...

Acquisition of Net Assets

Sun Corporation concluded the fair value of Tender Company was $60,000 and paid that amount to acquire its net assets. Tender reported assets with a book value of $55,000 and fair value of $71,000 and liabilities with a book value and fair value of $20,000 on the date of combination. Sun also paid $4,000 to a search firm for finder’s fees related to the acquisition.

Required

Give the journal entries to be made by Sun to record its investment in Tender and its payment of the finder’s fees.

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