Yeast Corporation purchased Bitter Ltd. on August 31, 2020. Y recorded goodwill in the purchase of Bitter. Yeast has determin goodwill will have an indefinite life. How will Yeast account for future accounting periods? Yeast will amortize the Bitter goodwill over a 50-year life. If the D
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![Yeast Corporation purchased Bitter Ltd. on August 31, 2020. Yeast Corporation
recorded goodwill in the purchase of Bitter. Yeast has determined that the Bitter
goodwill will have an indefinite life. How will Yeast account for the Bitter goodwill in
future accounting periods?
Yeast will amortize the Bitter goodwill over a 50-year life.
If the value of the Bitter goodwill increases in subsequent years, Yeast will
increase the value in the Bitter Goodwill account.
Yeast is not allowed to change the value of the Bitter Goodwill account
regardless of any future increase or decrease in the value of Bitter Goodwill.
If the value of the Bitter goodwill decreases in subsequent years, Yeast will
decrease the value in the Bitter Goodwill account.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3de35205-26d6-4454-aaa2-6bc3d012af0c%2F36c85c14-2990-4139-9a9a-42dd5d53bd18%2Fq075ikp_processed.jpeg&w=3840&q=75)
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- Sandhill Corp. sells idle machinery to Hollis Company on July 1, 2020, for $33,000. Sandhill agrees to repurchase this equipment from Hollis on June 30, 2021, for a price of $34,320 (an imputed interest rate of 4%). Prepare any other necessary journal entries for Sandhill in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Interest Expense enter a debit amount enter a credit amount Liability to Hollis Company enter a debit amount enter a credit amountOn January 2, 2023, Blossom Corp. bought a trademark from Cullumber Inc. for $117000. An independent research company estimated that the remaining useful life of the trademark was 25 years. At this time, the trademark's net book value in Cullumber's records was $174000. Because the trademark had a demonstrated limited life beyond 25 years, Blossom decided to amortize the trademark over the maximum period, straight-line with no residual. In Blossom's (calendar) 2023 income statement, what amount should be reported as amortization expense for this trademark? O $6492 O $6960 O $4680 O $5850GEE Company and EYCH Inc. decided to exchange machineries on January 1, 2019. The machine of GEE (Machine G) was purchased in January 1, 2016 for $1,000,000. The estimated useful life of the machine is 10 years, with no residual value. On the date of the exchange, Machine G's fair value is $680,000. EYCH's machine (Machine H) was purchased on January 1, 2018, for $2,500,000. The estimated useful life of the machine is 5 years, with no residual value. The fair value of Machine H on the date of exchange is $2,100,000. Because of the difference in the fair values, included in the agreement is a stipulation wherein GEE shall pay $1,500,000. The exchange is considered to be with commercial substance. How much shall EYCH Inc. initially recognize Machine G? A. $600,000 B. $2,000,000 C. $680,000 D. $2,100,000
- On January 1, 2024, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Nevels. The equipment cost Nevels $779,677 and has an expected economic life of five years. Nevels expects the residual value on December 31, 2027, will be $103,000. Negotiations led to the lessee guaranteeing a $146,000 residual value. Equal payments under the lease are $203,000 and are due on December 31 of each year with the first payment being made on December 31, 2024. Nguyen is aware that Nevels used a 8% interest rate when calculating lease payments. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Prepare the appropriate entries for both Nguyen and Nevels on January 1, 2024, to record the lease. Prepare all appropriate entries for both Nguyen and Nevels on December 31, 2024, related to the lease.Saint John Corporation prepares its financial statements according to IFRS. On June 30, 2021, the company purchased a franchise for $1,200,000. The franchise is expected to have a 10-year useful life with no residual value. Saint John uses the straight-line amortization method for all intangible assets. On December 31, 2021, the end of the company’s fiscal year, Saint John chooses to revalue the franchise. There is an active market for this particular franchise and its fair value on December 31, 2021, is $1,180,000.Required:1. Calculate amortization for 2021.2. Prepare the journal entry to record the revaluation of the patent.3. Calculate amortization for 2022.On January 1, 2024, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Nevels. The equipment cost Nevels $865,757 and has an expected economic life of five years. Nevels expects the residual value on December 31, 2027, will be $121,000. Negotiations led to the lessee guaranteeing a $182,000 residual value. Equal payments under the lease are $221,000 and are due on December 31 of each year with the first payment being made on December 31, 2024. Nguyen is aware that Nevels used a 8% interest rate when calculating lease payments. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1) Create the appropriate entries for both Nguyen and Nevels on January 1, 2024, to record the lease. 2) Create all appropriate entries for both Nguyen and Nevels on December 31, 2024, related to the lease. please hep me…
- Hull Inc. purchased a patent on September 1, 2020 for $ 65,000. At the time of purchase, Hull estimated that the patent's economic benefits would last until the end of 2024. Hull's fiscal year end is December 31. On April 1, 2023, Hull sold the patent to another company. Part a) Record the journal entry to record the sale, assuming Hull sold the patent for $22,000 Part b) Disregard your answer to part a). Record the journal entry to record the sale, assuming Hull sold the patent for $46,000.On January 1, 2024, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Nevels. The equipment cost Nevels $794,023 and has an expected economic life of five years. Nevels expects the residual value on December 31, 2027, will be $106,000. Negotiations led to the lessee guaranteeing a $152,000 residual value. Equal payments under the lease are $206,000 and are due on December 31 of each year with the first payment being made of December 31, 2024. Nguyen is aware that Nevels used a 8% interest rate when calculating lease payments. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Prepare the appropriate entries for both Nguyen and Nevels on January 1, 2024, to record the lease. 2. Prepare all appropriate entries for both Nguyen and Nevels on December 31, 2024, related to the lease. >…On January 1, 2024, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Nevels. The equipment cost Nevels $794,023 and has an expected economic life of five years. Nevels expects the residual value on December 31, 2027, will be $106,000. Negotiations led to the lessee guaranteeing a $152,000 residual value. Equal payments under the lease are $206,000 and are due on December 31 of each year with the first payment being made o December 31, 2024. Nguyen is aware that Nevels used a 8% interest rate when calculating lease payments. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) ● Required: 1. Prepare the appropriate entries for both Nguyen and Nevels on January 1, 2024, to record the lease. 2. Prepare all appropriate entries for both Nguyen and Nevels on December 31, 2024, related to the lease.…
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