Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 8, Problem 20E
1.
Summary Introduction
Introduction:
To calculate: The amount of goodwill recorded by R company at purchase date.
2.
Summary Introduction
Introduction:Goodwill is an intangible asset of the company. when a company has higher market value than its fair market price of assets & liabilities then the company has goodwill. Goodwill cannot be seen or touched. It helps in generating more sales & super profit for a company. it is created by value of company in the market.
To explain: The criteria used by R company for amortization of goodwill.
3.
Summary Introduction
Introduction:Goodwill is an intangible asset of the company. when a company has higher market value than its fair market price of assets & liabilities then the company has goodwill. Goodwill cannot be seen or touched. It helps in generating more sales & super profit for a company. it is created by value of company in the market.
To explain: The criteria used by R to record goodwill created by his efforts.
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Robinson Company purchased Franklin Company at a price of $3,820,000. The fair market value of the net assets purchased equals
$2,750,000.
1. What is the amount of goodwill that Robinson records at the purchase date?
2. Does Robinson amortize goodwill at year-end?
3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created
$1,520,000 of goodwill. Should Robinson Company record this goodwill?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
What is the amount of goodwill that Robinson records at the purchase date?
Goodwill
Robinson Company purchased Franklin Company at a price of $3,950,000. The fair market value of the net assets purchased equals
$2,860,000.
1. What is the amount of goodwill that Robinson records at the purchase date?
2. Does Robinson amortize goodwill at year-end?
3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created
$1,400,000 of goodwill. Should Robinson Company record this goodwill?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Does Robinson amortize goodwill at year-end?
Does Robinson amortize goodwill at year-end?
On January 1, 2018, Paye Company purchased Che Company at a cost that
resulted in recognition of goodwill of P 2 000 000. During the first quarter of
2018 Paye Company spent an additional P 800 000 on expenditures designed
to develop and maintain goodwill by training and hiring new employees.
Due to these expenditures, on December 31, 2018, Paye Company
Estimated the benefit period of goodwill was indefinite.
On December 31, 2018, what amount should be reported as goodwill?
Chapter 8 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Identify events that might lead to disposal of a...Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Refer to the December 31, 2016, balance sheet of...Ch. 8 - Prob. 20DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Identify the following assets a through i as...Ch. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Caleb Co. owns a machine that costs $42,400 with...Ch. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - On January 2, 2018, Bering Co. disposes of a...Ch. 8 - Prob. 25ECh. 8 - Prob. 26ECh. 8 - Timberly Construction negotiates a lump-sum...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Onslow Co. purchases a used machine for $178,000...Ch. 8 - Prob. 7PSACh. 8 - Prob. 8PSACh. 8 - Prob. 2PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8PSBCh. 8 - Selected ledger account balances for Business...Ch. 8 - Prob. 3FSACh. 8 - Prob. 5BTN
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- On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.arrow_forwardOn January 1, 2020, X Company purchased Y Company at a cost that resulted In recognition of goodwill at 10 million having an expected benefit period of 10 years. During the first half of 2020, X Company spent an additional 2 million on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2020, X Company estimated that the benefit period of goodwill was indefinite.In Its December 31, 2020 statement of financial position, what amount should X Company report as goodwill? A. 12,000,000 B. 10,000,000 C. 9,500,000 D. 9,000,000arrow_forwardJacky Inc. purchased Manzanita Marine on June 1, 2015 for $25,000,000 and recorded goodwill of $3,100,000 in connection with the purchase. At December 31, 2018, the Manzanita Marine Division had a fair value of $25,400,000. The net assets of Manzanita (including goodwill) had a fair value of $24,900,000 at that time. What amount of loss on impairment of goodwill should Jacky record in 2018?arrow_forward
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