Addition of both Grignard reagents or hydride reducing agents to the ester group of the readily available 2,4-dioxoalkanoates, while the 1,3-diketone fragment is suitably masked both in form of an isoxazole ring or as an enaminone function, allows a useful preparation of a variety of α'-hydroxy-1, 3-diketone moieties. Acid-promoted cyclodehydration of these compounds leads to 3(2H) furanones or 3(2H) furanimines depending on the substitution pattern and on reaction conditions.