Purple Corp purchased all of the listed assets and liabilities of Sudden Corp for $1,600,000 The following assets and liabilities were purchased Required 1 What is the appropriate amount that would be recorded for goodwill 2 Prepare the journal entry for the acquisition Book Value Falr Market Value...

Requirement 1 Goodwill purchased Actual purchase price 1600000 Less Estimated fair ...

Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The following

Question:

Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The following assets and liabilities were purchased:

Book Value Falr Market Value Accounts receivable $ 140,000 $ 140,000 Inventory 168,000 256,000 Property, plant, and equipment (net) 820,000 1,040,000 Patent 276,000 Liabilities (170,000) (170,000)

Required:

1. What is the appropriate amount that would be recorded for goodwill?

2. Prepare the journal entry for the acquisition.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting Volume 1

ISBN: 9781260306743

7th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick

See More Books

Question Posted: Jun 26, 2020 08:28 AM

See More Questions

Parent Corporation purchased all of the assets and liabilities of Sub Corporation for $ 800,000. The following assets and liabilities were purchased: Required: What is the appropriate amount that...
Johnson Corporation purchased all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $7,800,000. The...
Adjusted trial balances for Pal and Sor Corporations at December 31, 2011, are as follows (in thousands): Pal purchased all the stock of Sor for $1,600,000 cash on January 1, 2011, when Sor's...
Which of the units listed in Multiple-Choice Question 9 are appropriate for the biologically equivalent dose that results when a person is exposed to radiation? Data From Question 9 Which of these...
(a) Cyanide ion causes E for Fe(III) to decrease: Which ion, Fe(III) or Fe(II), is stabilized more by complexing with CN-? (b) Using Appendix H, answer the same question when the ligand is...
What are some potential consequences for truth and untruth? LO.1
2-5. What is the difference between a marketing dashboard and a marketing metric?
Define each of the following terms: a. Annual report; balance sheet; income statement b. Common stockholders equity, or net worth; retained earnings c. Statement of retained earnings; statement of...
TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $2,550,000 and there are 220,000 shares outstanding. If the benchmark pricesales ratio for the company is...
A study claims that all homeowners in a town spend an average of 8 hours or more on house cleaning and gardening during a weekend. A researcher wanted to check if this claim is true. A random sample...
Yucatan Tours Corp. (YTC) established a new division in 20X8. The mandate of this new division is to establish a presence in the growing luxury eco tourism travel business. This division will offer,...
During 20X4, the Pencil Corp. entered into negotiations to buy Stilo Company, finally agreeing on a final cash purchase price of $534,000. Pencil will acquire all assets and liabilities of Stilo...
Derive an expression for the equilibrium constant $K(T)$ for the reaction $\mathrm{N}_{2}+\mathrm{O}_{2} ightleftarrows 2 \mathrm{NO}$ in terms of the ground state energy change \(\Delta...
Encouraging you to sit back and watch a full hour of one of your favorite shows on prime-time television. However, instead of getting up during the commercial break or fast forwarding through the...
A family member has been recently diagnosed with a heart condition that requires replacing a heart valve. She points out that if she goes to India, the surgery cost is about 60% cheaper on average...
Based on the case of Bowers Machine Parts. Critically analyze why people were not doing their best and critically explain why hiring a consultant might solve the issue. Justify your answer by using...
Identify a few strategies for sustainability effectiveness. Should sustainability be a corporation's top priority? Why or why not? What are the challenges associated with implementing sustainable...
Answer the following questions for the topic you want to write about. Type your answers in a separate Word document. What is the issue or debatable idea you might write about? What is debatable about...
The figure shows an overhead view of a hydraulically-operated gate. As fluid enters the piston side of the cylinder near A, the rod at B extends causing the gate to rotate about a vertical axis...
Graph the following conic sections, labeling vertices, foci, directrices, and asymptotes (if they exist). Give the eccentricity of the curve. Use a graphing utility to check your work. 10 5 + 2 cos 0
The following independent situations relate to inventory accounting: 1. Sanderson Company?s inventory of $1.1 million at December 31, 2020, was based on a physical count of goods priced at cost and...
Hudsons Bay Company (HBC), as described in Note 1 to its financial statements, is a Canadian corporation that owns and operates department stores in Canada, United States and . . . Europe. HBCs...
Jaeco Corporation asks you to review its December 31, 2020 inventory values and prepare the adjustments that are needed to the books. The following information is given to you: 1. Jaeco uses the...
Question 4. - Week 9. What are the major competitive issues General Electric faces when managing cooperative strategies? - (7 marks)
All of the following are roles of a derivative exchange EXCEPT: _____. A) maintaining margin requirements on futures contracts B) reducing the default risk on forward contracts C) performing daily...
you are analyzing the cost of debt for a firm. Do you know that the firms 14 year maturity, 7.8 Percent coupon bonds are selling at a price of $834. The Barnes pay interest semi annually. If these...

Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The following

Question:

Book Value Falr Market Value Accounts receivable $ 140,000 $ 140,000 Inventory 168,000 256,000 Property, plant, and equipment (net) 820,000 1,040,000 Patent 276,000 Liabilities (170,000) (170,000)

Step by Step Answer:

Requirement 1 Goodwill purchased Actual purchase price 1600000 Less Estimated fair ...View the full answer

Intermediate Accounting Volume 1

Students also viewed these Business questions