Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of thenet assets purchased equals $1,800,000. What is the amount of goodwill that Robinson records at the purchase date?
Q: CARNATION Company purchased an entity for ₱6,000,000 cash on January 31. The book value and fair…
A: Under the accounting terms, goodwill is defined as intangible asset which arises when the buyer…
Q: ) Prepare the journal entry to account for any impairment of goodwill. b) Assume instead that at…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation…
A: Introduction Goodwill is considered as an intangible assets that is linked with purchasing of one…
Q: Chili's, acquired Thallicious for $32,170,000. The fair value of all Thailicioustangible and…
A: Goodwill is the excess of consideration paid over the fair values of net assets of the acquiring…
Q: Princess has acquired several other companies. Assume that Princess purchased Krandell for…
A: Answer 1:
Q: ABC Corporation purchased XYZ Inc. The latter has the following account balances: The noncurrent…
A: The term goodwill refers to the excess amount that is paid in acquisition over the fair value of net…
Q: What is the gain to be reported on FLORIDA's December 31, 20X8 consolidated income statement?
A: P130,000 is the gain to be reported n FLORIDA's December 31, 20X8 consolidated income statement.…
Q: Short Corporation acquired Hathaway, Inc., for $32,620,000. The fair value of all Hathaway's…
A: In 2001, According to the Financial Accounting Standards Board (FASB) declared in Statement 142,…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: A) Testing cash-genearting unit for impairment On June 30, 2019 Goodwill Net identifiable assets…
Q: Robinson Company purchased Franklin Company at a price of $3,950,000. The fair market value of the…
A: Introduction: Goodwill is an intangible asset related to the purchase of a business by another. When…
Q: arizona corp. acquired the business data systems for $320,000 cash and assumed all liabilites at the…
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: How much should Dolly Company report goodwill as of December 31, 2022?
A: Goodwill is the amount of money which has been paid by the acquiring company in excess of the net…
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition is the cost at which one business firm or any individual acquires another…
Q: What is the goodwill arising from the acquisition?
A: Goodwill= Consideration paid - Fair value of assets - Fair value of liabilities Where Consideration…
Q: Gulf Company purchases Arab Company for $900,000 cash on January 2, 2019. The book value of Arab…
A: Goodwill refers to an intangible asset that is usually associated with the acquisition of a company…
Q: Java Dreams shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is…
A: Goodwill = Amount paid for purchase of business - (Fair value of assets - Book value of liabilities)…
Q: Required: a) Prepare the journal entry to account for any impairment of goodwill. b) Assume…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition means total expenses incurred by entity to purchase new entity or assets. Here…
Q: Robinson Company purchased Franklin Company at a price of $3,820,000. The fair market value of the…
A: Goodwill is the value of the company over its fair market value. It is a recognition in respect of…
Q: Acquirer Limited purchased 75 per cent of Subby Limited for $45 000. The fair value of identifiable…
A: Goodwill is allocated to non-controlling interest in the proportion of the shareholding retained by…
Q: On January 1, 2021 Major acquired 60% of Minor for a cash payment of $600,000. At date of…
A: Formula: Goodwill = Purchase price - Fair value of Net Assets
Q: Perkins has acquired several other companies. Assume that Perkins purchased Kettle for $11,000,000…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Beeman Company exchanged machinery with an appraised value of $3,538,500, a recorded cost of…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: On luly 1, 2017, Vinson Corporation acquired Carlev Company for $900,000 cash. At the time of…
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth…
A: 1.
Q: On January 1, 2021 Major acquired 60% of Minor for a cash payment of $600,000. At date of…
A: Formula: Goodwill = Purchase price - Fair value of Assets
Q: Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Bryer Co. purchases all of the assets and liabilities of Stellar Co. for $1,500,000. The fair value…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Fair value of net identifiable assets = P133,000 + P900,000 - P10,000 = P1,023,000
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition is a concept that includes all the costs at the time of purchase. It is net…
Q: On October 20, 2018, Toffeenut Project Company purchased all the assets and assumed all the…
A: Goodwill is an intangible asset that is recognized during the process of a company buying another…
Q: Rooky acquired Bamboo on December 31,2020 for P500,000. Bamboo's Liabilities and Capital at that…
A: Goodwill:- It is an intangible asset which one shows in the Balance sheet of the company. These…
Q: The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $15,300. The…
A: Goodwill = Purchase consideration - Net assets Where. Net assets = Fair value of total assets - Fair…
Q: On January 1, 2020, Azure Corporation purchased Sparrow Corporation for $20 million. Of the $20…
A: Goodwill: It is an intangible asset and represents a business reputation. It is recognized when a…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: Fair value of the consideration transferred = $5,000,000 Fair value of net identifiable assets =…
Q: Barry Company sells a patent for $25,000. The patent had an acquisition cost of $120,000 and…
A: Accumulated Amortization:Accumulated amortization is the total sum of amortization expense recorded…
Q: Xtra Company purchased a business from Argus for $96,000 above the fair value of its net assets…
A: Goodwill is classified as an intangible asset on the balance sheet. Under US GAAP and IFRS, goodwill…
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition is the total cost incurred (including transaction cost) by a company to overtake…
Q: New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $72,800 in cash.…
A: Calculation of fair value of net identifiable assets : Current assets =…
Q: Floyd Company purchases Haeger Company for $800,000cash on January 1, 2011. The book value of Haeger…
A: Consolidation: It can be defined as the process of merging or combining various smaller businesses…
Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…
A: Goodwill: It can be defined as an intangible asset that is measured when an existing company is…
Q: . How much goodwill will Elf Hotels record on the acquisition?
A:
Q: Carla Vista Corporation acquired End-of-the-World Products on January 1, 2020 for $6150000, and…
A: Given information Recorded goodwill = $1,150,000 fair value = $4,482,000 Carrying value =…
Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…
A: Given information is: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair…
Q: Harold Fishing Gear Company's acquired Sea Breeze Ltd for $450,000. The book values and fair values…
A: Solution: Purchase price of Sea Breeze Ltd = $450,000 Fair value of net assets of Sea Breeze = Fair…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the
net assets purchased equals $1,800,000. What is the amount of
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- K First Company purchased Second Company for $20,000,000 cash. At the time of purchase, Second Company's assets had a market value of $30,000,000 and the liabilities had a market value of $19,000,000. At the time of purchase, Second Company's assets had a book value of $12,000,000 and the liabilities had a book value of $8,000,000. What amount of goodwill is recorded? OA. $19,000,000 OB. $10,000,000 OC. $11,000,000 O D. $9,000,000 GBaine Company purchased Vera Company at a price of $535,000. The fair value of the net assets purchased equals $434,000. Compute the amount of goodwill that Baine records at the purchase date.First Company purchased Second Company for $19,000,000 cash. At the time of purchase, Second Company's assets had a market value of $28,000,000 and the liabilities had a market value of $13,000,000. At the time of the purchase, Second Company's assets had a book value of $15,000,000, and the liabilities had a book value of $9,000,000. What amount of goodwill is recorded?
- 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? GoodwillBryer Co. purchases all of the assets and liabilities of Stellar Co. for $1,500,000. The fair value of Stellar’s assets is $2,000,000, and its liabilities have a fair value of $1,200,000. The book value of Stellar’s assets and liabilities are not known. For what amount would Bryer record goodwill associated with the purchase? a. $800,000.b. $500,000.c. $700,000.d. $0.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?
- 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 DoneAt year-end, QRS Company reported assets of P5,000,000 and liabilities of P2,000,000. The carrying amounts of the assets approximate fair value, except for land which has a fair value that is P300,000 greater than carrying amount. On same date, RST Company paid P6,000,000 to acquire QRS Company. Determine the amount of goodwill that should be recorded by the acquirer as a result of this purchase. a. 1,000,000 b. 3,300,000 c. 2,700,000 d. 3,000,000Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of thenet assets purchased equals $1,800,000. Does Robinson amortize goodwill at year-end for financial reporting purposes? If so, over how many years is it amortized?
- On September 1, 2019, Winans Corporation acquired Aumont Enterprises for a cash payment of £800,000. At the time of purchase, Aumont’s statement of financial position showed assets of £600,000, liabilities of £200,000, and equity of £400,000. The fair value of Aumont’s assets is estimated to be £800,000. Compute the amount of goodwill acquired by Winans.Hoover Company acquired Burgess Company for $1,200,000 cash. The fair value of Burgess's assets was $1,040,000, and the company had liabilities of $60,000. Which of the following journal entries would be used to record the purchase of Burgess Company? Multiple Choice Burgess assets Burgess liabilities Goodwill Cash Burgess assets Cash 1,040,000 60,000 100,000 1,200,000 1,200,000 1,200,000ABC Corporation purchased XYZ Inc. The latter has the following account balances: The noncurrent assets have a fair value of P4,500,000. ABC paid the owners of XYZ a total purchase price of P4,500,000. How much is the goodwill that ABC should record from this acquisition? *refer to attached photo