Amount of goodwill to be recorded on the date of acquisition. Given Information: Cost of acquisition for the company’s voting common stock is $5,000,000. Appraised value of net asset is $1,400,000 more than the book value. Book value of the assets is 5,574,900. Liabilities amounted to $4,324,900.

Question

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Answer 1

Question

Chapter 11, Problem 11.25E

a.

To determine

Amount of goodwill to be recorded on the date of acquisition.

Given Information:

Cost of acquisition for the company’s voting common stock is $5,000,000.

Appraised value of net asset is $1,400,000 more than the book value.

Book value of the assets is 5,574,900.

Liabilities amounted to $4,324,900.

b.

To determine

The way goodwill is accounted after the date of acquisition.

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Answer 2

Question

Chapter 11, Problem 11.25E

a.

To determine

Amount of goodwill to be recorded on the date of acquisition.

Given Information:

Cost of acquisition for the company’s voting common stock is $5,000,000.

Appraised value of net asset is $1,400,000 more than the book value.

Book value of the assets is 5,574,900.

Liabilities amounted to $4,324,900.

b.

To determine

The way goodwill is accounted after the date of acquisition.

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Answer 3

Question

Chapter 11, Problem 11.25E

a.

To determine

Amount of goodwill to be recorded on the date of acquisition.

Given Information:

Cost of acquisition for the company’s voting common stock is $5,000,000.

Appraised value of net asset is $1,400,000 more than the book value.

Book value of the assets is 5,574,900.

Liabilities amounted to $4,324,900.

b.

To determine

The way goodwill is accounted after the date of acquisition.

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Answer 4

Question

Chapter 11, Problem 11.25E

a.

To determine

Amount of goodwill to be recorded on the date of acquisition.

Given Information:

Cost of acquisition for the company’s voting common stock is $5,000,000.

Appraised value of net asset is $1,400,000 more than the book value.

Book value of the assets is 5,574,900.

Liabilities amounted to $4,324,900.

b.

To determine

The way goodwill is accounted after the date of acquisition.

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Answer 5

Chapter 11, Problem 11.25E

a.

To determine

Amount of goodwill to be recorded on the date of acquisition.

Given Information:

Cost of acquisition for the company’s voting common stock is $5,000,000.

Appraised value of net asset is $1,400,000 more than the book value.

Book value of the assets is 5,574,900.

Liabilities amounted to $4,324,900.

b.

To determine

The way goodwill is accounted after the date of acquisition.

Answer 6

Chapter 11, Problem 11.25E

a.

To determine

Amount of goodwill to be recorded on the date of acquisition.

Given Information:

Cost of acquisition for the company’s voting common stock is $5,000,000.

Appraised value of net asset is $1,400,000 more than the book value.

Book value of the assets is 5,574,900.

Liabilities amounted to $4,324,900.

Answer 7

Chapter 11, Problem 11.25E

a.

To determine

Amount of goodwill to be recorded on the date of acquisition.

Given Information:

Cost of acquisition for the company’s voting common stock is $5,000,000.

Appraised value of net asset is $1,400,000 more than the book value.

Book value of the assets is 5,574,900.

Liabilities amounted to $4,324,900.

Answer 8

b.

To determine

The way goodwill is accounted after the date of acquisition.

Answer 9

b.

To determine

The way goodwill is accounted after the date of acquisition.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 11 - Stephen J. Cosgrove is the Former Vice President....Ch. 11 - Prob. 11.2Q Ch. 11 - Prob. 11.3Q Ch. 11 - Prob. 11.4Q Ch. 11 - Will the expense/capitalization choice impact...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - For a long-lived operating asset acquired by...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Amount of goodwill to be recorded on the date of acquisition. Given Information: Cost of acquisition for the company’s voting common stock is $5,000,000. Appraised value of net asset is $1,400,000 more than the book value. Book value of the assets is 5,574,900. Liabilities amounted to $4,324,900.

Solution Summary: The author concludes that the amount to be recorded as goodwill at the time of acquisition is 2,350,000. Indefinite life intangible assets do not amortize.

The way goodwill is accounted after the date of acquisition.

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Chapter 11 Solutions