(worth $35,000), inventory (worth $83,750), and copyrights (worth$12,250).Instructions:1. Prepare the July 1 entry for Aeroplus Corporation to record thepurchase.2. Prepare the December 31 entry for Aeroplus Corporation torecord amortization of intangibles. The copyrights have anestimated useful life of 5 years with a residual value of $2,250. On April 1, 2020, Aeroplus Corporation purchased JohnsonCompany by paying $200,000 cash and issuing a $50,000 notepayable to Steve Johnson. At April 1, 2020, the balance sheet ofJohnson Company was as follows:CashReceivablesInventoryLandBuildings (net)Equipment (net)Copyrights$38,50066,50075,00030,00056,250Instructions:52,5007,500$326,250Accounts payableStockholders' Equity$160,000166,250$326,250The recorded amounts all approximate current values except for land(worth $35,000), inventory (worth $83,750), and copyrights (worth$12,250).

Journal Entry to record purchase of Jonson Company. Date Particular Debit Credit July 1 Land…

(worth $35,000), inventory (worth $83,750), and copyrights $12,250). Instructions: 1. Prepare the July 1 entry for Aeroplus Corporation to record the purchase. 2. Prepare the December 31 entry for Aeroplus Corporation to record amortization of intangibles. The copyrights have an estimated useful life of 5 years with a residual value of $2,250.

(worth $35,000), inventory (worth $83,750), and copyrights $12,250). Instructions: 1. Prepare the July 1 entry for Aeroplus Corporation to record the purchase. 2. Prepare the December 31 entry for Aeroplus Corporation to record amortization of intangibles. The copyrights have an estimated useful life of 5 years with a residual value of $2,250.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 38P

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