ssume that a drilling machine is acquired for the following consideration: cash: $200,000 shares: 20,000 shares with a market value of $4.50 each Machine: Cost $100,000, accumulated depreciation, $75,000, fair value $37,000   The buying company also agrees to assume the liability of the selling company’s accounts payable of $25 000 as part of the drilling machine acquisition.   Required:  Calculate the acquisition cost of the drilling machine

Tesla acquired Amazon, for $33,520,000. The fair value of all Amazon's identifiable tangible and intangible assets was $30,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition? Multiple Choice O O $880,000 $1,760,000 $O $3,520,000 < Prev 6 of 25 Save & Ex Next

If the company's assets in TL: cash 100.000, accounts receivable 50.000, inventory 150.000, and building 200.000 (market value 300.000) and the liabilities 300.000. If the price paid to acquire company 400.000 TL, how much is the goodwill under market value approach? Select one: a. 100.000 b. 300.000 c. 200.000 d. 150.000

PLTO Ltd. is considering purchasing the net assets of Ivanhoe Corporation. Following is the statement of financial position of Ivanhoe as at December 31, 2023: Ivanhoe Corporation Statement of Financial Position As at December 31, 2023 Current assets Buildings and equipment Accumulated depreciation Land Total assets Current liabilities Common shares Retained earnings Total equities Current assets Building and equipment Land Following are the fair values for Ivanhoe's net assets, as at December 31, 2023: Current liabilities $230,400 754,000 (108,000) 169.000 Value of goodwill $1,045,400 $187,000 582,000 276,400 $1,045,400 $ Calculate the value of goodwill that would be acquired by PLTO if it offered $2,061,600 for the net assets of Ivanhoe. $224,500 488,400 309,700 (166,000) $856,600

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Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $84,000 and accumulated depreciation of $48,000. This equipment was traded in for new equipment with a list price of $96,000. The new machine can be purchased without a trade-in for $90,000 cash. The difference between the fair value of the new asset and the market value of the old asset will be paid in cash.   Prepare the entry to record acquisition of the new machine under each of the following separate cases. a. The new machine is purchased for cash with no trade-in. b. The transaction has commercial substance. The old equipment is traded in, and $60,000 cash is paid. c. The same as in part b except that the transaction lacks commercial substance.     a. Account Name Dr. Cr. Answer Answer Answer Answer Answer Answer     b. Account Name Dr. Cr. Equipment (new) Answer Answer Accumulated Depreciation Answer Answer Answer Answer Answer Answer Answer Answer Equipment (old) Answer…

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Acquisition Cost of Long-Lived Asset The following data relate to a firm's purchase of a machine used in the manufacture of its product: Invoice price Applicable sales tax Cash discount taken for prompt payment Freight paid Cost of insurance coverage on machine while in transit Installation costs Testing and adjusting costs Repair of damages to machine caused by the firm's employees Prepaid maintenance contract for first year of machine's use Determine the acquisition cost of the machine. Acquisition Cost = $ $30,000 2,000 400 260 125 3,000 475 750 300

4. The following transactions occurred during 2020: a. Axis Oil Company and Alan Oil Company jointly purchased a 1,500-acre lease in Oklahoma for $48,000. Axis has a 55% WI and Alan has a 45% WI Axis will be the operator of the lease. b. Brady Oil Company owns 100% WI in a lease (with a 1/5 royalty interest), with capitalized costs of $500,000. Brady assigns the working interest to Fugate Oil for $900,000 and keeps an 18% overriding royalty interest. c. Brady Oil Company owns 100% WI in a lease (with a 1/7 royalty interest) in Oklahoma and transfers a 1/15 overriding royalty interest to the controller of the company. d. Bruce Oil Company owns the working interest in a lease in Nueces County, Texas and assigns 45% of the working interest to the Larson Oil Company in return for Larson drilling and equipping a well on the property. After the well is completed, Bruce and Larson will share revenues and costs. e. Larson Oil Company assigns the working interest in Lease A to Bruce Oil Company…

Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and accumulated depreciation of $30,000. This equipment was traded in for new equipment with a list price of $60,000. The new machine can be purchased without a trade-in for $56,250 cash. The difference between the fair value of the new asset and the market value of the old asset will be paid in cash.   Prepare the entry to record acquisition of the new machine under each of the following separate cases. a. The new machine is purchased for cash with no trade-in. b. The transaction has commercial substance. The old equipment is traded in, and $37,500 cash is paid. c. The same as in part b except that the transaction lacks commercial substance.     a. Account Name Dr. Cr. AnswerCashPrepaid InsuranceEquipmentBuildingLandConstruction in           ProcessAccumulated           DepreciationAccounts PayableProperty Tax PayableAsset Retirement ObligationNote PayableDiscount on Note…