Mary Limited acquired the identifiable assets and liabilities of Joan Limited. The items acquired are: equipment $296 000; inventories $160 000; accounts receivable $90 000 (fair value $104 000); patents $60 000; accounts payable $80 000. The net assets were acquired for consideration of $530 000. The difference on acquisition is:   a.

Garcla Co. owns equlipment that cost $77,600, with accumulated depreclation of $41.200. Record the sale of the equipment under the following three separate cases assuming Garcla sells the equipment for (1) $47,600 cash. (2) $36,400 cash, and (3) $31.,300 cash. Vlew transaction Ilat Journal entry worksheet A Record the sale of equipment assuming Garcia sells the equipment for $47,600 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry Vlew general journal

Effects of qualifying as a business on asset acquisitions Assume that on January 1, 2016 an investor company paid $8,700 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Investee's Estimated Fair Asset (Liability) Production equipment Book Value Value $900 $780 4,500 300 4,290 1,170 1,560 Factory Land Patents In addition, the investor provided to the seller contingent consideration with a fair value of $200 and the investor paid an additional $300 of transaction costs to an unaffiliated third party. The contingent consideration has a potential settlement value of $450 in two years, and is not a derivative financial instrument. The book values are from the investee's financial records immediately before the exchange. The fair values are measured in accordance with FASB ASC 820: Fair Value Measurement. Parts a. and b. are independent of each other. If no additional debit or credit entries are required, select "No entry" as…

ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet:     Book Value Fair Value Current Assets $50,000 $  50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000   What is the amount recorded by ACME for the Building? a. $110,000 b. $20,000 c. $80,000 d. $100,000

Answer

None

Big Company purchased all of the assets of Small Company 5 years ago recording Goodwill at the time of the purchase. On 1/1 of the current year they evaluate the Goodwill for impairment. Data Goodwill recorded at time of purchase $150,000 Book Value of the Net Assets of Small Company on 1/1 $900,000 Estimated Fair Value of Small Company on 1/1 $850,000 Undiscounted Estimated Cash flow of Small Company on 1/1 $890,000 What amount of loss on impairment of goodwill should they record on 1/1 O Loss on Impairment of $40,000. Loss on Impairment of $ 0. Loss on Impairment of $ 10,00. O Loss on Impairment of $ 50,000.