Asset purchase agreement has the following entries debit assets ($ amounts listed) credit amount due to seller ($ amount listed) . Asset Purchase Agreement specifically states that the entries listed in the Asset Purchase Agreement (debit assets, credit liability for the amount due to the seller) is the allocation of the purchase price.
There are assumed customer contracts by the buyer - is there a reason/propriety to book these contracts at the date of the closing of the Asset Purchase Agreement and record these at the same time as debiting the assets that were purchased - there are not any dollar amounts listed in the Asset Purchase Agreement for the assumed customer contracts.
Thank you very much for your wisdom and comments.
There are assumed customer contracts by the buyer - is there a reason/propriety to book these contracts at the date of the closing of the Asset Purchase Agreement and record these at the same time as debiting the assets that were purchased - there are not any dollar amounts listed in the Asset Purchase Agreement for the assumed customer contracts.
Thank you very much for your wisdom and comments.
Comment