A company owns a chain of toysfactories, On frst of January 2010, thecompany acquired a toy factory from itscompetitor for $40,000. The fair value othe assets was assessed as following:the building of workshop had a marketvalue of $35,000, the machinery had thefair value of $10.000, and the otherfixtures are $5,000.Question:1.What's the acquisition cost of eacha5set?2.Please prepare the journal entry torecord the acquisition.
- The acquisition cost of the workshop building is $35,000, the machinery is $10,000, and the other fixtures are $5,000.
- The journal entry to record the acquisition would be as follows: 借：固定资产 - Workshop Building 35,000 固定资产 - Machinery 10,000 固定资产 - Other Fixtures 5,000 贷：Cash 40,000
These entries assume that the entire acquisition cost was paid in cash. If there were other means of payment or if there were additional costs associated with the acquisition, the journal entry would need to be adjusted accordingly.
