Advance Accounting work

Paul, Inc. acquired 100% of Ernie’s Inc. net assets on January 1, 2009 for $300,000 in cash and paid 10,000 for acquisition cost. The following facts relate to the acquisitions:Accounts Receivable50,000Inventory80,000Equipment, Net50,000Land and Building, Net120,000Total Assets$300,000Bonds Payable90,000Common stock100,000Retained earnings110,000Total Liabilities and Stockholders’ Equity$300,000Fair value of acquired net assets:Accounts receivable$50,000Inventory100,000Equipment30,000Land and building180,000Customer list30,000Bonds payable100,000In 3–5 pages, complete the following:Determine and provide the proper accounting entry to record the subsidiary on Paul’s books on January 1, 2009 as if Ernie was dissolved.Determine and provide the proper accounting entry to record the subsidiary on Ernie’s books on January 1, 2009 as if Ernie was dissolved.While acquisitions are often friendly, there are numerous occasions when a party does not want to be acquired. Discuss possible defensive strategies that firms can implement to fend off a hostile takeover attempt.

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