Question

Exercise 13 On July 1, 2014, Brigham Corporation purchasedYoung Company by paying $260,590 cash and issuing a $151,900 notepayable to Steve Young. At July 1, 2014, the balance sheet of YoungCompany was as follows. Cash $50,400 Accounts payable $204,830Accounts receivable 91,760 Stockholders’ equity 239,170 Inventory103,520 $444,000 Land 40,700 Buildings (net) 75,230 Equipment (net)70,860 Trademarks 11,530 $444,000 The recorded amounts allapproximate current values except for land (fair value of $80,670),inventory (fair value of $125,100), and trademarks (fair value of$16,424). Prepare the July 1 entry for Brigham Corporation torecord the purchase. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually.)