1, 2020, Smeder Company, an 80% owned subsidiary of Collins, with a 10-year life (six of which remain with no salvage value) to C sh. At the date of transfer, Smeder's records carried the equipme ulated depreciation of $48,000. Straight-line depreciation is used 28,000 and $32,000 for 2020 and 2021, respectively. All net inc er are attributed to the seller for consolidation purposes. nt of gain should be reported by Smeder Company relating to the zing consolidating entries? le Choice

D2.

Action, Inc. acquired the following assets and assumed the related liabilities of Slacker Corp. in a transaction completed on February 16, 2023: Accounts receivable, net Inventories Property, plant & equipment Non-amortizable intangible assets Carrying value for Slacker Current liabilities Noncurrent liabilities $ 11,000 $ 50,000 $ 100,000 $ 200,000 Fair Value $ 10,000 $ 50,000 $ 150,000 $ 225,000 $ (40,000) $(200,000) $ (40,000) $(200,000) Action paid $205,000 in cash for all of the above from Slacker. a) Determine if Action must record any goodwill. Show any calculations. b) Record the acquisition in Action's general journal on Feb. 16, 2023. Show: any calculations. c) Prepare any adjusting entry for amortization required as of the fiscal year end, December 31, 2023. If no amortization is required, explain why.