3. ABC Company's balance sheet as of December 31, 2010 appears as follows (gain) Cash $600 Accounts Payable $400 Accounts Receivable 500 Bonds

    Totals

$3,490

$3,490

DDC Corp. purchased ABC Company on January 1, 2011 by paying $1,300 cash and issuing a $200 note payable. Brigham determined that the recorded balance sheet amounts above approximated the current fair values except for buildings (fair value of $900) and accounts payable (fair value of $500). Additionally, Brigham determined that ABC's trademark was worth $500. The journal entry to record this purchase should includes