kai.9 Grapefruit Inc. purchased Tangelo Inc for $1,000,000. Included in the purchase were tangible netassets with a fair value of $550,000 plus a patent valued at $100,000 and a copyright valued at$75,000.On year later, Grapefruit estimates the goodwill related to this purchase has a value of 300,000.What, if any, journal entry should Grapefruit record?DR: [Select]CR: [Select][Select][Select]

Here The excess amount paid in addition to fair value of assets received is to be considered as…

Answered: Grapefruit Inc. purchased Tangelo Inc…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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Your firm pays $100,000 to acquire 100% of the Chimp Bicycles. The balance sheet of Chimp Bicycles is shown below. Fair Value Cash A/R Inventory Trademark $3,000 $5,000 $30,000 $25,000 $8,000 Liabilities A. How much goodwill will you record? Show its presentation on your balance sheet? B. One year later, the fair value of Chimp Bicycles is $80,000 discovered upon goodwill impairment. Record the journal entry for goodwill impairment
Melton Devices acquires Beck, a small start-up company, by paying $2,170,900 in cash on January 2. Following are the book values and fair values of Beck on the date of acquisition. (Click the icon to view the book values and fair values.) Read the requirements. Requirement a. What is the amount of goodwill acquired? The amount of goodwill acquired Requirement b. What intangible assets are acquired? Which of the intangibles have an indefinite life? Which will be amortized? What will the amortization expense be in the year after acquisition? (If an input field is not used in the table leave the field empty, do not enter a zero) Intangible Asset Finite or Indefinite Life Amortization Amortized? Expense Trial Balance Beck Book Value Fair Value Cash $ 29,000 $ 29,000 Receivables 100,700 100,650 Manufacturing Equipment 640,350 654,500 Patents (remaining life 8 years) 60,600 684,000 Trademarks 14,650 187,500 Payables 58,904 58,904 Print Done
There are 260,000 common shares issued and outstanding in PC Inc. Champion Incorporated bought 91,000 common shares of PC Inc. on December 31, 2020 for $957,000. This acquisition provided Champion Incorporated with significant influence over PC Inc. On December 31, 2020, PC Inc. reported assets of $4,600,000 and liabilities of $1,932,000 on its balance sheet. The book values of PC Inc.'s assets and liabilities are equal to their fair values, except for depreciable assets. PC Inc.'s depreciable assets have a fair value of $610,000 and a net book value of $558,000. These depreciable assets have a remaining useful life of 8 years. On September 10, 2021, PC Inc. paid a total of $95,000 in dividends to its common shareholders. For the year ended December 31, 2021, PC Inc. generated net income of $326,000. Champion Incorporated follows IFRS.
V6. A company purchases land, building and equipment for $1,500,000. An independent appraisal shows that the best available indications of fair value at the time of purchase are: land: $760,000; building: $540,000; and equipment: $320,000. The purchase is financed through long-term debt. Required: Prepare the journal entry to record the purchase Prepare the journal entry to record the purchase:
answer needed ASAP Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2020. Cost $6,000,000 Carrying amount 5,200,000 Expected future net cash flows 4,700,000 Fair value 3,200,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2020, the copyrights have a remaining useful life of 5 years. a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. b. Prepare the journal entry to record amortization expense for 2021. c. The fair value of the copyright at December 31, 2021 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
14 Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of component of the purchase is given below: Asset Fair Market value Land 85000 Building 155000 Equipment 460000 Calculate the amount at which each of the above components shall be recognized on purchase date and write the journal entry for recording purchase transaction. a. Dr Land Ac OMR 85000 Dr Building A/C 155000 Dr Equipment A/C 460000and Cr Cash A/C OMR 700000 b. Dr Land Ac OMR 97120 Dr Building A/C 177120 Dr Equipment A/C 525760 and Cr Cash A/C OMR 800000 c. None of the given options d. Dr Cash A/C OMR 800000 and Cr land A/c 97120 Cr Building A/C 177120 Equipment A/C 460000
On January 1, 2024, Jackson purchased ABC Company for $900,000. At the time, ABC Company had assets with a market value of $320,000 and liabilities with a market value of $100,000. What is the amount of goodwill Jackson should report on January 1, 2024? O $220,000 $480.000 $680,000 O $420,000
These are selected 2027 transactions for Indigo Corporation: Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $210,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Purchased a patent with an estimated useful life of 5 years and a legal life of 24 years for $71,400. Purchased a small company and recorded goodwill of $152,450. Its useful life is indefinite. Indicate the amount of amortization expense on December 31, 2027, for Indigo Corporation. Amortization expense $
! Required information [The following information applies to the questions displayed below.] The following information relates to the intangible assets of Lettuce Express: a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Ic., for $1,590,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,431,000. b. Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $54,000. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 10 more years. c. Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franchise fee of $187,600. The contractual life of the franchise is seven years. 2. Prepare the intangible asset section of the December 31, 2021, balance sheet. LETTUCE EXPRESS Balance Sheet December 31, 2021 (Intangible Assets Section) Intangible Assets…
a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,153,000 in cash. The fair value of the net Identifiable assets of Heinrich was $2,850,000. b. Included in the assets purchased from Heinrich was a patent valued at $91,200. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only eight more years. c. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $356,000. The contractual life of the franchise is 10 years. Required: 1. Record amortization expense for the Intangible assets at December 31, 2024. 2. Prepare the intangible asset section of the December 31, 2024, balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the intangible asset section of the December 31, 2024, balance sheet.
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
On January 1, 2020, London Company purchased a large On the date of purchase, the management estimated that During January 2021, the entity realized that technological Problem 8-11 (IAA) quantity of personal computers. The cost of these computers have a residual value at that time of P600,000. The entity the computers would last approximately four years and wouH On January 1, 2020, London Company purchased quantity of was P6,000,000. On the date of purchase, the management estimated used the double declining balance method. advancements had made the computers virtually obsolet and that they would have to be replaced. The management changed the remaining useful life of the computers to two years. What amount should be recorded as depreciation for 2021? a. 3,000,000 b. 2,400,000 c. 1,500,000 d. 1,200,000

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