Watson Company purchased assets of Holmes Limited at auction for $1,230,000. An independent appraisal of the fair value of the assets acquired is listed below: Land Building Equipment Inventory $ 272,000 340,000 544,000 204,000 Required: Prepare the journal entry to record the purchase of the assets. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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![Watson Company purchased assets of Holmes Limited at auction for $1,230,000. An independent appraisal of the fair value of the
assets acquired is listed below:
Land
Building
Equipment
Inventory
$ 272,000
340,000
544,000
204,000
Required:
Prepare the journal entry to record the purchase of the assets.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69ce1400-6fa2-4cf0-8eac-26218449bff9%2F28574739-2b43-4e94-acbe-1a67f43b7561%2Fkqswrfe_processed.jpeg&w=3840&q=75)
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- Jonas Tech Corporation recently acquired Innovation Plus Company. The combined firm consists of three related businesses that will serve as reporting units. In connection with the acquisition, Jonas requests your help with the following asset valuation and allocation issues. Support your answers with references to FASB ASC as appropriate.Jonas recognizes several identifiable intangibles from its acquisition of Innovation Plus. It expresses the desire to have these intangible assets written down to zero in the acquisition period.The price Jonas paid for Innovation Plus indicates that it paid a large amount for goodwill. However, Jonas worries that any future goodwill impairment may send the wrong signal to its investors about the wisdom of the Innovation Plus acquisition. Jonas thus wishes to allocate the combined goodwill of all of its reporting units to one account called Enterprise Goodwill. In this way, Jonas hopes to minimize the possibility of goodwill impairment because a decline…Splish Brothers Ltd. is a publicly listed company following IFRS. Assume that on December 31. 2020, the carrying amount of land on the statement of financial position (SFP) is $505.000. Management determines that the land's value in use is $435.000 and that the fair value less costs to sell is $400.000. Using the rational entity impairment model, prepare the journal entry required, if any, to record the impairment loss. (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 December 31, 2020Carver Inc. purchased a building and the land on which the building is situated for a total cost of $922,800 cash. The land was appraised at $244,081 and the building at $817,139. What is the accounting term for this type of acquisition? Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. Would the company recognize a gain on the purchase? Record the purchase in a horizontal statements model.
- Melton Devices acquires Beck, a small start-up company, by paying $2,170,900 in cash on January 2. Following are the book values and fair values of Beck on the date of acquisition. (Click the icon to view the book values and fair values.) Read the requirements. Requirement a. What is the amount of goodwill acquired? The amount of goodwill acquired Requirement b. What intangible assets are acquired? Which of the intangibles have an indefinite life? Which will be amortized? What will the amortization expense be in the year after acquisition? (If an input field is not used in the table leave the field empty, do not enter a zero) Intangible Asset Finite or Indefinite Life Amortization Amortized? Expense Trial Balance Beck Book Value Fair Value Cash $ 29,000 $ 29,000 Receivables 100,700 100,650 Manufacturing Equipment 640,350 654,500 Patents (remaining life 8 years) 60,600 684,000 Trademarks 14,650 187,500 Payables 58,904 58,904 Print DoneBorn Corporation agrees to acquire the net assets ofWren Corporation on January 1, 2015.Wren has the following balance sheet on the date of acquisition:An appraiser determines that in-process R&D exists and has an estimated value of $20,000. The appraisal indicates that the following assets have fair values that differ from their book values: Fair ValueInventory . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 340,000Trademark . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000Use value analysis to prepare the entry on the books of Born Corporation to acquire the net assets ofWren Corporation under each of the following purchase price scenarios:1. Purchase price is $540,000.2. Purchase price is $350,000.Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $983,000 cash The land was appraised at $248 699 and the building at $881,751 Required: What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model.
- Center Company acquired three intangible assets before 2020. 2020. Before that date, no formal financial statements had been prepared and the cost of intangible assets had been charged to Problem 32-11 (IAA) Cunter Company acquired three intangible assets before 2020. The entity is preparing financial statements on December 31, 0 Before that date, no formal financial statements had been appared and the cost of intangible assets had been charged to operations when acquired. The following intangible assets were accounted for in this manner. Acquisition date Useful life Cost Copyright 1 Copyright 2 Patent January 1,2016 20 400,000 360,000 500,000 July 1, 2017 15 January 1,2018 10 Required: 1. Prepare correcting entry to record the intangible asseta on January 1, 2020. 2. Prepare journal entry to record amortization of intangible assets for 2020.Concord Corporation purchased the assets of Ivanhoe Company at an auction for $5640000. An independent appraisal of the fair value of the assets is listed below: Land $1830000 Building 2910000 Equipment 2250000 Trucks 3250000 Assuming that specific identification costs are impracticable and that Concord allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Building? A)$1602773 B)$2910000 C)$2250000 D)$5120000Turbo LLC has made an exchange of assets with Autojet LLC. Turbo LLC received equipment with model no: 5M892020 and in return it gave off an equipment with model number: 45P2019 if the acquired asset cannot be valued, as an IAS student how would you show accounting treatment the asset acquired? I The residual value is used I. The cost of the asset given up is used III. The asset cannot be capitalized IV. The difference amount of both assets is used I or IV only Il only II or IV only III only 0343P T-TI/-W-T EN
- An entity classified a noncurrent asset accounted for under the costmodel as held for sale at the current year-end. The entity decided at theend of the following year not to sell the asset but to continue to use it. Theasset should be measured at the end of the following year at A. The lower of carrying amount and recoverable amountB. The higher of carrying amount and recoverable amountC. The lower of carrying amount on the basis that it had never been classified as held forsale and recoverable amountD. The recoverable amountRequired information [The following information applies to the questions displayed below.] DLW Corporation acquired and placed in service the following assets during the year: Asset Computer equipment Furniture Commercial building Show Transcribed Text Asset Computer equipment Furniture Commercial building Total Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Show Transcribed Text Date Acquired 2/27 J Asset Computer equipment Furniture Commercial building Total 4/26 9/1 a. What is DLW's year 1 cost recovery for each asset? Year 3 Cost Recovery $ Cost Basis 9,500 17,700 338,000 Year 1 Cost Recovery b. What is DLW's year 3 cost recovery for each asset if DLW sells all of these assets on 4/1 of year 3?On 2 January 20.7, AC Entity commenced with activities and during January 20.7 the entity incurred the following transactions:1. On 2 January 20.7, the owner made the property that AC Entity utilises available for theexclusive use of the entity. The property was registered in the owner’s name a few days before2 January 20.7. The purchase price of the property was R1 200 000 (R200 000 for the land andR1 000 000 for the buildings).2. On 2 January 20.7, the owner opened a cheque account for the entity and deposited R1 800000 in the account.3. On 2 January 20.7, furniture and equipment to the amount of R225 000 was ordered. Thesupplier, Payable K, delivered the furniture and equipment on 5 January 20.7 to AC Entity’spremises. The invoice price is R225 000 and it was agreed with Payable K to pay the outstandingamount on 30 January 20.7.4. Trade inventories to the amount of R20 000 was ordered on 7 January 20.7 and it was agreedwith Payable L that the outstanding amount will be paid 30 days…
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