DSSI acquired all of the assets and liabilities of Smith Alarms, LLC for $555,000 cash. The assets included equipment valued at $425,000 (carried on Smith Alarms' books at $300,000 net), accounts receivable of $230,000, accounts payable of $250,000, and a demand loan of $52,000, with no intangible assets.

1. DSSI acquired all of the assets and liabilities of Smith Alarms,
LLC for $555,000 cash.
The assets included equipment valued at $425,000 (this
equipment was carried on the
books of Smith Alarms, LLC at $300,000 net), accounts
receivable of $230,000, accounts
payable of $250,000, and a demand loan of $52,000. There were
no intangible assets. (6
points)