EP FINANCIAL ACCOUNTING-MYACCOUNTINGLAB
5th Edition
ISBN: 9780134728858
Author: Kemp
Publisher: PEARSON CO
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Chapter 8, Problem 50AP
1.
To determine
Record the Restaurant T’s purchase of Company D for cash, including any
2.
To determine
Explain the manner in which Restaurant T should account for the goodwill after acquiring Company D.
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the company paid $750,000 to buy a collection of asset. the asset had the following appraised values:
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Basket Purchase of Intangible Assets
Taraz Company paid $500,000 to purchase the following portfolio of intangibles with estimated fair values as indicated:
Estimated Fair Value
Internet domain name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000
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In addition, Taraz spent $300,000 to run an advertising campaign to boost its image in the local community. Make the journal entries necessary to record the purchase of the intangibles and the payment for the…
On January 1, 2025, Abel Company purchased three assets for$400,000. The information below relates to the assets thatwere purchased:Current Market Value
Forklift ................... $144,500
Bulldozer .................. $119,000
Truck ...................... $161,500In order to make the forklift usable, Abel Company had tospend $8,000 to get the forklift in working condition.Information related to the depreciation of the forkliftand the bulldozer is given below:Forklift BulldozerSalvage value $5,400 $7,000Life 11 years 14 yearsDepreciation method sum-of-the straight-lineyears-digitsCalculate the forklift's book value at December 31, 2028
Chapter 8 Solutions
EP FINANCIAL ACCOUNTING-MYACCOUNTINGLAB
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - What is depreciation, and why is it used in...Ch. 8 - Prob. 5DQCh. 8 - Which depreciation method would be moot...Ch. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 1SCCh. 8 - Prob. 2SCCh. 8 - How should a capital expenditure for a long-term...Ch. 8 - Which depreciation method usually produces the...Ch. 8 - Prob. 5SCCh. 8 - Prob. 6SCCh. 8 - Prob. 7SCCh. 8 - Prob. 8SCCh. 8 - Prob. 9SCCh. 8 - Prob. 10SCCh. 8 - Prob. 11SCCh. 8 - Prob. 12SCCh. 8 - Prob. 1SECh. 8 - Long-term asset terms (Learning Objective 1) 5-10...Ch. 8 - Prob. 3SECh. 8 - Lump-sum purchase (Learning Objective 2) 5-10 min....Ch. 8 - Errors in accounting for long-term assets...Ch. 8 - Concept of depreciation (Learning Objective 3)...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Prob. 9SECh. 8 - Prob. 10SECh. 8 - Prob. 11SECh. 8 - Prob. 12SECh. 8 - Prob. 13SECh. 8 - Prob. 14SECh. 8 - Prob. 15SECh. 8 - Other long term assets (Learning Objective 8) 5-10...Ch. 8 - Prob. 17SECh. 8 - Prob. 18AECh. 8 - Prob. 19AECh. 8 - Prob. 20AECh. 8 - Prob. 21AECh. 8 - Depreciation methods (Learning Objective 3) 15-20...Ch. 8 - Prob. 23AECh. 8 - Prob. 24AECh. 8 - Prob. 25AECh. 8 - Prob. 26AECh. 8 - Prob. 27AECh. 8 - Prob. 28AECh. 8 - Prob. 29AECh. 8 - Prob. 30AECh. 8 - Prob. 31AECh. 8 - Prob. 32BECh. 8 - Prob. 33BECh. 8 - Prob. 34BECh. 8 - Prob. 35BECh. 8 - Prob. 36BECh. 8 - Prob. 37BECh. 8 - Prob. 38BECh. 8 - Prob. 39BECh. 8 - Prob. 40BECh. 8 - Prob. 41BECh. 8 - Prob. 42BECh. 8 - Prob. 43BECh. 8 - Prob. 44BECh. 8 - Prob. 45BECh. 8 - Long-term asset costs and partial-year...Ch. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51APCh. 8 - Prob. 52APCh. 8 - Prob. 53BPCh. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 55BPCh. 8 - Prob. 56BPCh. 8 - Prob. 57BPCh. 8 - Prob. 58BPCh. 8 - Prob. 59BPCh. 8 - Prob. 1CECh. 8 - Prob. 1CPCh. 8 - Continuing Financial Statement Analysis Problem...Ch. 8 - Prob. 1EIACh. 8 - Prob. 2EIACh. 8 - Financial Analysis Purpose: To help familiarize...Ch. 8 - Prob. 1IACh. 8 - Prob. 1SBACh. 8 - Written Communication A client of yours notified...
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- On January 1, 2025, Abel Company purchased three assets for$400,000. The information below relates to the assets thatwere purchased:Current Market Value Forklift ................... $144,500 Bulldozer .................. $119,000 Truck ...................... $161,500In order to make the forklift usable, Abel Company had tospend $8,000 to get the forklift in working condition.Information related to the depreciation of the forkliftand the bulldozer is given below: Forklift Bulldozer Salvage value $5,400 $7,000Life 11 years 14 yearsDepreciation method sum-of-the straight-lineyears-digitsOn July 31, 2035, the bulldozer was sold for $51,000 cash.Calculate the amount of the gain recorded on the sale ofthe bulldozer. Do not enter your answer with a minus signin front of your number.arrow_forwardOn January 1, 2025, Abel Company purchased three assets for$400,000. The information below relates to the assets thatwere purchased:Current Market Value Forklift ................... $144,500 Bulldozer .................. $119,000 Truck ...................... $161,500In order to make the forklift usable, Abel Company had tospend $8,000 to get the forklift in working condition.Information related to the depreciation of the forkliftand the bulldozer is given below: Forklift Bulldozer Salvage value $5,400 $7,000Life 11 years 14 yearsDepreciation method sum-of-the straight-lineyears-digitsCalculate the forklift's book value at December 31, 2028.arrow_forward(Learning Objective 8: Report cash flows for plant assets) Assume AlfonsoCorporation completed the following transactions:a. Sold a store building for $670,000. The building had cost Alfonso $1,600,000, and at thetime of the sale, its accumulated depreciation totaled $930,000.b. Lost a store building in a fire. The building cost $300,000 and had accumulateddepreciation of $220,000. The insurance proceeds received by Alfonso totaled $200,000.c. Renovated a store at a cost of $140,000 (cash).d. Purchased store fixtures for $110,000 (cash). The fixtures are expected to remain inservice for ten years and then be sold for $110,000. Alfonso uses the straight-linedepreciation method.For each transaction, show what Alfonso would report for investing activities on its statement ofcash flows. Show negative amounts in parentheses.arrow_forward
- 5 - Our company has purchased a land for 472.000 TL including 18% VAT. Which of the following accounts is correct to use in the relevant accounting record ? a) 191 VAT Deductible 72.000 TL (Creditor) B) 250 Land and Lands Hs. 400.000 TL (Creditor) NS) 391 Calculated VAT Hs. 72.000 TL (Borrower) D) 252 Buildings Hs. 72.000 TL (Borrower) TO) 250 Land and Lands Hs. 400.000 TL (Borrower)arrow_forwardPlease answer Requirment 7 & 8 only, please. Recently the Ace Manufacturing Company purchased an office building and a new computersystem. Below is the information about these two new items of Property, Plant, & Equipment.The following are the facts for the office building:Date on which the building was purchased .... April 1, 2021Purchase price ............................................... $1,800,000Method of payment ........................................ paid $300,000 cash – signed a note forthe remainder of the purchase priceEstimated life ................................................. 50 yearsEstimated value at the end of 50 years .......... $0Depreciation method ...................................... Straight-LineThe following are the facts for the computer system:Date on which computer was purchased ........ May 1, 2021Purchase price ............................................... $58,800Method of payment ........................................ CashEstimated life…arrow_forwardGrant Company purchased the net assets of Harding Company on January 1, 2015, and made the following entry to record the purchase:Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000Land. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 50,000Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000Note Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000Account to be determined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000Common Stock ($1 par). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000Paid-in Capital in Excess of Par . . . . . . . . . . . . . . .…arrow_forward
- 14 - Our company has purchased a land for 472.000 TL including 18% VAT. Which of the following accounts is correct to use in the relevant accounting record ? a) 252 Buildings Hs. 72.000 TL (Borrower) B) 250 Land and Lands Hs. 400.000 TL (Creditor) NS) 250 Land and Lands Hs. 400.000 TL (Borrower) D) 391 Calculated VAT Hs. 72.000 TL (Borrower) TO) 191 VAT Deductible 72.000 TL (Creditor)arrow_forwardDepreciation of $26,400 relating to equipment used 100% for instruction at a private college should be recorded as a: B D Debit to Instruction Expense Debit to Accumulated Depreciation Debit to Depreciation Expense Debit to Equipmentarrow_forwardUse the following to answer questions 20 - 22 AJ Construction is in the process of closing its operations. It sold its five-year-old Caterpillar 279C Compact Track Loader for $100,000. The loader originally cost $180,000 and had an estimated useful life of 10 years and an estimated residual value of $40,000. The company uses straight-line depreciation for all equipment. 20. $ loader at the end of the fifth year. Calculate the book value of the 21. $ What was the gain or loss on the sale of the loader at the end of the fifth year; (if loss, put – in front of your answer). 22. Record the sale of the loader at the end of the fifth year.arrow_forward
- 7. JBC purchased an ongoing business for P10,000,000 cash. The assets and liabilities of the acquired business measured at fair value are: Cash Accounts Receivable Inventory Land Plant and equipment Accounts Payable Bonds Payable 525,000 c. P 625,000 d. P 400,000 2,075,000 2,500,000 4,125,000 6,065,000 (895,000) What is the amount of gain on bargain purchase? a. P 500,000 b. P 550,000 (3,895,000)arrow_forwardLearning Objective 5: Measure and record goodwill) Munchies, Inc., dominates thesnack-food industry with its Salty Chip brand. Assume that Munchies purchased Sweet SnacksCompany for $5.4 million cash. The market value of Sweet Snacks’ assets is $10 million, andSweet Snacks has liabilities with a market value of $7.1 million.Requirements1. Compute the cost of the goodwill purchased by Munchies.2. Explain how Munchies will account for goodwill in future years.arrow_forwardAssets $ 64,900 88,878 $ 83,5ee 68,625 261,8e0 Cash Accounts receivable Inventory Prepaid expenses 298,656 1,310 437,736 147,500 2,095 408,e20 118,e00 Total current assets Equipment Accum. depreciation-Equipment (41,625) $ 543,611 (51,e00) $ 475,020 Total assets Liabilities and Equity Accounts payable Short-term notes payable $ 63,141 13,000 76,141 6e,000 136,141 $ 129,675 8,e0e Total current liabilities 137,675 58,750 Long-term notes payable Total liabilities 196,425 Equity Connon stock, $5 par value Paid-in capital in excess of par, connon stock Retained earnings 160, 250 76 , 77ב 52,500 177,220 118,345 $ 475,020 Total liabilities and equity $ 543,611 FORTEN COMPANY Incone Statement For Current Year Ended Decenber 31 Sales $ 632,500 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment 295,eee 337,5ee $ 30,75e 142,480 173,158 (15,125) 149.225 38,250 $ 110,975 Income before taxes Income taxes expense Net…arrow_forward
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