Goodwill : The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets. The amount of goodwill that R records at the date of purchase.

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Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 8, Problem 22E

1.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

The amount of goodwill that R records at the date of purchase.

2.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether the goodwill is amortized for financial reporting.

3.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether R should record value created from superior customer service as goodwill.

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Robinson Company purchased Franklin Company at a price of $3,820,000. The fair market value of the net assets purchased equals $2,750,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,520,000 of goodwill. Should Robinson Company record this goodwill? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of goodwill that Robinson records at the purchase date? Goodwill

Robinson Company purchased Franklin Company at a price of $3,950,000. The fair market value of the net assets purchased equals $2,860,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,400,000 of goodwill. Should Robinson Company record this goodwill? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Does Robinson amortize goodwill at year-end? Does Robinson amortize goodwill at year-end?

In which of the following situations would Martinez Indus-tries include goodwill in its balance sheet? a. The fair market value of Martinez’s net identifiableassets amounts to $2,000,000. Normal earnings for thisindustry are 15 percent of net identifiable assets. Netincome for the past five years has averaged $390,000.b. Martinez spent $800,000 during the current year for research and development for a new product that prom-ises to generate substantial revenue for at least 10 years. c. Martinez acquired Baxter Electronics at a price in excess ofthe fair market value of Baxter’s net identifiable assets. d. A buyer wishing to purchase Martinez’s entire opera-tion has offered a price in excess of the fair market value of the company’s net identifiable assets.

Answer 2

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 8, Problem 22E

1.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

The amount of goodwill that R records at the date of purchase.

2.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether the goodwill is amortized for financial reporting.

3.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether R should record value created from superior customer service as goodwill.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 8, Problem 22E

1.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

The amount of goodwill that R records at the date of purchase.

2.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether the goodwill is amortized for financial reporting.

3.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether R should record value created from superior customer service as goodwill.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 8, Problem 22E

1.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

The amount of goodwill that R records at the date of purchase.

2.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether the goodwill is amortized for financial reporting.

3.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether R should record value created from superior customer service as goodwill.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 22E

1.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

The amount of goodwill that R records at the date of purchase.

2.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether the goodwill is amortized for financial reporting.

3.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether R should record value created from superior customer service as goodwill.

Answer 6

Chapter 8, Problem 22E

1.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

The amount of goodwill that R records at the date of purchase.

Answer 7

Chapter 8, Problem 22E

1.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

The amount of goodwill that R records at the date of purchase.

Answer 8

2.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether the goodwill is amortized for financial reporting.

Answer 9

2.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether the goodwill is amortized for financial reporting.

Answer 10

3.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether R should record value created from superior customer service as goodwill.

Answer 11

3.

To determine

Concept Introduction:

Goodwill: The asset which has the value of the business over and above its net assets value is stated as goodwill. This excess value a business may derive generally due to superior management, skilled workforce, quality product and services, good location, and good customer and supplier relations. Goodwill is generally recorded when a business purchase occurs, it is recorded as assets.

Whether R should record value created from superior customer service as goodwill.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8 - Prob. 1QS Ch. 8 - Prob. 2QS Ch. 8 - Prob. 3QS Ch. 8 - Prob. 4QS Ch. 8 - Prob. 5QS Ch. 8 - Prob. 6QS Ch. 8 - Prob. 7QS Ch. 8 - Prob. 8QS Ch. 8 - Prob. 9QS Ch. 8 - Prob. 10QS

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Chapter 8 Solutions