Central States Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana Central States purchased goodwill as part of the acquisition of Shurburn Wireless Company, which had the following figures Book value of assets $ 750,000 Market value of assets 1,000,000 Market value ...

Requirement 1 Purchase price to acquire Shurburn Wireless 360000 540000 9 ...

Central States Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Central States purchased goodwill

Question:

Central States Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Central States purchased as part of the acquisition of Shurburn Wireless Company, which had the following figures:
Book value of assets.....$ 750,000
Market value of assets.....1,000,000
Market value of liabilities.. 560,000
Requirement:
1. Journalize the entry to record Central States’s purchase of Shurburn Wireless for $360,000 cash plus a $540,000 note payable.
2. What special asset does Central States’s acquisition of Shurburn Wireless identify? How should Central States Telecom account for this asset after acquiring Shurburn Wireless? Explain in detail. Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...