On January 1, 2025, Henderson Company purchased 100% of the common stock of Caramel Company for $590,000 cash. Fair values differed from book values as follows:      Fair value Land   100,000 Patent   250,000 Bonds Payable   105,000 The trial balances of the companies at the acquisition date are as follows:   Trial Balance       Account Titles Henderson Caramel Cash 650,000  65,000  Land 120,000  30,000  Buildings, net 250,000  180,000  Goodwill 400,000  200,000 Current Liabilities 170,000  75,000  Bonds Payable 500,000 100,000  Common Stock 70,000  30,000  APIC 350,000  70,000  Retained Earnings 330,000 200,000  Which of the following is not one of the eliminations and adjustments included on the consolidation worksheet at the acquisition date? Question 9Answer a. Debit to Common Stock for $30,000 b. Credit to Goodwill for $200,000 c. Credit to Investment in Sub for $590,000 d. Debit to Land for $100,000

SFFN Corp. purchased the entire business of AZC, Inc. including all its assets and liabilities for $1,800,000. Below is information related to the two companies:     SFFN   AZC   Fair value of assets $ 3,050,000   $ 1,600,000 Fair value of liabilities   2,575,000     800,000 Reported assets   2,800,000     1,400,000 Reported liabilities   2,500,000     750,000 Net Income for the year   460,000     250,000                     How much goodwill will SFFN recognize as a result of its acquisition of AZC?   Select one: a. $-0- b. $1,225,000 c. $1,150,000 d. $200,000 e. $1,000,000

Dengar

Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31, 20X4, fr $102,200. The fair value of the noncontrolling interest at that date was determined to be $43,800. Data from the balance sheets of the two companies Included the following amounts as of the date of acquisition: Item Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation. Investment in Scholar Corporation Total Assets Accounts Payable Mortgage Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Professor Corporation $ 50,300 90,000 Scholar Corporation $21,000 44,000 130,000 75,000 60,000 30,000 410,000 250,000 (150,000) (80,000) 102,200 $ 692,500 $340,000 $ 152,500 $ 35,000 250,000 180,000 80,000 40,000 210,000 85,000 $ 692,500 $340,000 At the date of the business combination, the book values of Scholar's assets and liabilities approximated fair value except for Inventory, which had a fair value of $81,000, and…

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Current liabilities Book Value $ 10,200,000 21,000,000 1,800,000 7,200,000 11,800,000 Fair Value $ 13,200,000 Other assets Long-term liabilities Required: 27,000,000 2,800,000 7,200,000 10,800,000 Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million

In January 1, 2011, Cullmon Company acquired an 80% interest in Toner Company for a purchase price that was $550,000 over the book value of Toner’s Stockholders’ Equity on the acquisition date. The Cullmon allocated the excess to the following [A] assets: [A] Asset Initial Fair Value Useful Life (years) Patent 300,000 10 Goodwill 250,000 Indefinite   $550,000   Toner sells inventory to the Cullmon (upstream) which includes that inventory in products that it (Cullmon), ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2016 and 2017:   2016 2017 Transfer price for inventory sale $ 671,000 $ 733,000 Cost of goods sold (615,000)              (653,000) Gross profit $   56,000 $   80,000 % inventory remaining         25%         35% Gross profit deferred $   14,000 $   28,000       EOY Receivable/Payable $   90,000 $ 100,000 The inventory not…

House Corporation has been operating profitably since its creation in 1960. At the beginning of 2016, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared the following fair-value allocation schedule:                 Consideration transferred for 70% interest in Wilson         $ 707,000 Fair value of the 30% noncontrolling interest           303,000 Wilson business fair value         $ 1,010,000 Wilson book value           790,000 Excess fair value over book value         $ 220,000 Assignments to adjust Wilson’s assets to fair value:             To buildings (20-year remaining life) $ 60,000         To equipment (4-year remaining life)   (20,000 )       To franchises (10-year remaining life)   40,000       80,000 To goodwill (indefinite life)         $ 140,000     House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House's purchases during 2016 and 2017 and related ending inventory…

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