Fairgate Company’s 12/31/19 statement of financial position reports assets of $6,000,000 and liabilities of $2,500,000. All of the book values of Fairgate’s assets approximate their fair value, except for land, which has a fair value that is $400,000 greater than its book value. On 12/31/19, Morris Corporation paid $6,500,000 to acquire Fairgate. What amount of goodwill should Morris record as a result of this purchase?

Q: On December 31 , 2010, Scotch Company decided and classified a group of its assets as held for sale…

A: According to International accounting standard-36 (impairment of assets), it states that the…

Q: Broncos Corporation acquired the following assets associated with a manufacturing facility for a…

A: Computation of the Intial value of the patent is as follows :

Q: )  Prepare the journal entry to account for any impairment of goodwill.  b)  Assume instead that at…

A: Goodwill:   Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: On September 1, 2020, Culver Corporation acquired Splish Brothers Enterprises for a cash payment of…

A: Goodwill' Goodwill is an intangible asset. Goodwill is a reputation of a business which cannot be…

Q: On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation…

A: Introduction Goodwill is considered as an intangible assets that is linked with purchasing of one…

Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…

A: Given information is:  Robinson Company purchased Franklin Company at a price of $2,500,000. The…

Q: Chili's, acquired Thallicious for $32,170,000. The fair value of all Thailicioustangible and…

A: Goodwill is the excess of consideration paid over the fair values of net assets of the acquiring…

Q: What is the gain to be reported on FLORIDA's December 31, 20X8 consolidated income statement?

A: P130,000 is the gain to be reported n FLORIDA's December 31, 20X8 consolidated income statement.…

Q: Sheffield Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of…

A: Impairment of loss: The impairment loss must be recorded so that the asset is written down. There is…

Q: Dorel Company is being purchased and has the following balance sheet as of the purchase date:…

A: Net assets of Dorel = Current assets + Fair value of fixed assets - fair value of current…

Q: Short Corporation acquired Hathaway, Inc., for $32,620,000. The fair value of all Hathaway's…

A: In 2001, According to the Financial Accounting Standards Board (FASB) declared in Statement 142,…

Q: Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of…

A: Goodwill: Goodwill is an intangible asset. Goodwill is a reputation of a business which cannot be…

Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.1…

A: Goodwill is determined as an excess of the cost of a company acquired over the fair value of its net…

Q: The Oscar Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: Total cost to be assigned = P20,000,000 + P240,000 Total cost to be assigned = P20,240,000

Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…

A: Impairment loss is occurred when the fair value of asset is less than the carrying value of an…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition is the cost at which one business firm or any individual acquires another…

Q: Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: lumpsum price including                                                       appraisal cost  is  $…

Q: What is the goodwill arising from the acquisition?

A: Goodwill= Consideration paid - Fair value of assets - Fair value of liabilities Where Consideration…

Q: In 2016, Alliant Corporation acquired Centerpoint, Inc. for $300 million, of which $50 million was…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for…

A:

Q: Java Dreams shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is…

A: Goodwill = Amount paid for purchase of business - (Fair value of assets - Book value of liabilities)…

Q: Cheyenne Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of…

A: Loss on impairment = Carrying value of goodwill - Fair value of goodwill

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition means total expenses incurred by entity to purchase new entity or assets. Here…

Q: On September 1, 2017, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000.…

A: Workings: Given values Acquired Aumont enterprises for $ 700000 Assets = $ 620000 Liabilities = $…

Q: On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for…

A: Book value of the goodwill on December 31, 20Y9 = Goodwill premium on January 1, 20Y3

Q: Ayayai Corporation purchased Kingbird Company 3 years ago and at that time recorded goodwill of…

A: Implied value of Goodwill = Fair value of Division- Fair value of Kingbird Division’s net assets…

Q: On January 1, 2021 Major acquired 60% of Minor for a cash payment of $600,000. At date of…

A: Formula: Goodwill = Purchase price - Fair value of Assets

Q: Archibald Corporation, a public corporation exchanged an asset with Bass Industries. The following…

A: Journal Entries on the books of Archibald Corp assuming that the exchange would have commercial…

Q: Lake Incorporated purchased all of the stock of Huron Company, paying $950,000 cash. Lake also…

A: Goodwill: Goodwill is a non-physical intangible asset which is  generated when a company is acquired…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Fair value of net identifiable assets =  P133,000 + P900,000 - P10,000  = P1,023,000

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition is a concept that includes all the costs at the time of purchase. It is net…

Q: September 1, 2020, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At…

A:

Q: On October 20, 2018, Toffeenut Project Company purchased all the assets and assumed all the…

A: Goodwill is an intangible asset that is recognized during the process of a company buying another…

Q: On January 1, 2019, Parker, Inc., a U.S.-based firm, acquired 100 percent of Suffolk PLC located in…

A: As per International accounting standard 21, translating the trial balance or balance sheet of the…

Q: Carmela Company acquired a financial instrument for P4,000,000 on March 31, 2020. The financial…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On August 1, 2017, Riverbed Corporation acquired Marin, Inc. for a cash payment of $2.30 million. At…

A: Goodwill is an excess amount of purchase consideration over the net value of assets. It is based on…

Q: On August 1, 2017, Concord Corporation acquired Skysong, Inc. for a cash payment of $2.10 million.…

A: Net assets value = Fair value of assets - Liabilities = $4326000-2550000 = $1,776,000

Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…

A: 1. Calculation of Initial Valuation: Total Purchase price = Land and Building Purchase Cost + Title…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition is the total cost incurred (including transaction cost) by a company to overtake…

Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…

A: Goodwill is refereed as the reputation of the business which is an intangibles asset that does not…

Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…

A: Given information is: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair…

Q: Harold Fishing Gear Company's acquired Sea Breeze Ltd for $450,000. The book values and fair values…

A: Solution: Purchase price of Sea Breeze Ltd = $450,000 Fair value of net assets of Sea Breeze = Fair…

Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: On May 28, 2018, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc.…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: On January 1, 20X1, Promo, Inc. purchased 70% of Set Corporation for $469,000. On that date the book…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: First Company purchased Second Company for $19,000,000 cash. At the time of purchase, Second…

A: Business combination can be done by way of mergers and acquisitions. n an acquisition, a company…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.