Consideration transferred CASE 1

Issuance of shares
30,000.00 25.00 750,000.00
Notes payable 180,000.00
Contingent consideration (asset)
Stock
Asset 120,000.00 30% 36,000.00
Total acquisition cost/ consideration 966,000.00
Fair value of net assets acquired 864,000.00
Goodwill (Bargain purchase gain) 102,000.00

PURE - THE ACQUIRER CASE 1 TO 3, 6

Cash 24,000.00
Accounts receivable 48,000.00
Inventories 72,000.00
Land 240,000.00
Building 360,000.00
Equipment 300,000.00
IPR&D 60,000.00
Goodwill 102,000.00
Accounts payable 72,000.00
Other liabilities 168,000.00
Common stock 300,000.00
APIC 450,000.00
Notes payable 180,000.00
Estimated liability - CC 36,000.00
Paid in capital - CC

Acquisition related expenses 105,600.00

APIC 32,400.00
Cash 138,000.00

BALANCE SHEET Pure (book) Debit

Cash 276,000.00 24,000.00
Accounts receivable 96,000.00 48,000.00
Inventories 288,000.00 72,000.00
Land 108,000.00 240,000.00
Building 480,000.00 360,000.00
Equipment 432,000.00 300,000.00
IPR&D 60,000.00
Goodwill 102,000.00
Total assets 1,680,000.00

Accounts payable 216,000.00

 Other liabilities 240,000.00
Notes payable -
Estimated liability - CC -
Common stock 720,000.00
APIC 240,000.00 32,400.00
Retained earnings 264,000.00 105,600.00
Total Liabilities and SHE 1,680,000.00

CASE 2
Building 24,000.00
Goodwill 24,000.00

CASE 3
3.B Goodwill 24,000.00
Estimated liability - CC 24,000.00

3.C.1 126,000.00
3.C.2 Estimated liability - CC 12,000.00
Gain on reversal of CC 12,000.00
3.C.3.1 126,000.00
3.C.3.2 Loss on CC 30,000.00
Estimated liability - CC 30,000.00
3.C.3.3.1 126,000.00
3.C.3.3.2 Estimated liability - CC 78,000.00
Loss on CC 42,000.00
Cash 120,000.00

CASE 5.C Paid in capital - CC 18,000.00

Common stock 12,000.00
APIC 6,000.00

CASE 6 APIC 60,000.00

Common stock 60,000.00

CASE 7 Fair value of 12-31-20x4

30,000.00 25.00 750,000.00
Fair value of 01-01-20x7
30,000.00 20.00 600,000.00
Decrease (actual) 150,000.00
20.00
Additional shares 7,500.00

APIC 75,000.00
Common stock 75,000.00
CASE 8 Fair value 12-31-20x4 750,000.00
Estimated fair value 12-31-20x5 510,000.00 30,000.00
Estimated decrease in value 240,000.00
0.40
96,000.00
0.96
Paid in capital - CC 92,307.69

Paid in capital - CC 92,307.69

Common stock 75,000.00
APIC 17,307.69
CASE 2 CASE 3 CASE 5 CASE 6/7 CASE 8

750,000.00 750,000.00 750,000.00 750,000.00 750,000.00

180,000.00 180,000.00 180,000.00 180,000.00 180,000.00

18,000.00 - 92,307.69
36,000.00 60,000.00 36,000.00 36,000.00 36,000.00
966,000.00 990,000.00 984,000.00 966,000.00 1,058,307.69
888,000.00 864,000.00 864,000.00 864,000.00 864,000.00
78,000.00 126,000.00 120,000.00 102,000.00 194,307.69
3.A 5.a
CASE 5. B
24,000.00
48,000.00
72,000.00
240,000.00
360,000.00
300,000.00
60,000.00
120,000.00
72,000.00
168,000.00
300,000.00
450,000.00
180,000.00
36,000.00
18,000.00

Credit Combined
138,000.00 162,000.00
144,000.00
360,000.00
348,000.00
840,000.00
732,000.00
60,000.00
102,000.00
2,748,000.00

72,000.00 288,000.00
168,000.00 408,000.00
180,000.00 180,000.00
36,000.00 36,000.00
300,000.00 1,020,000.00
450,000.00 657,600.00
158,400.00
2,748,000.00

18,000.00

18,000.00
17.00