1. ABC acquired AXEL Inc for $5.5 million. AXEL Inc's balance sheet reported assets of $4.1 million and liabilities of $2.3 million. The fair value of AXEL Inc's assets was estimated to be $4.5 million and the fair value of their liabilities were estimated to be $2.9 million. How much goodwill was recorded on ABC's balance sheet in connection with this acquisition?

2. Seven years ago, AXEL Inc., purchased a machine for $110,000, which had an estimated useful life of 11 years and no residual value. The company depreciates the machine on a straight-line basis. It currently has a remaining useful life of 4 years. The current fair value of the crane is $35,000. Company management estimates that the machine will generate future cash flows of $9,000 per year for the remaining useful life of the asset. The company determined that the asset is impaired.

The amount of the impairment loss to be recognized is?

3. On January 1, 2021, AXEL Inc receives $200,000 from a bank loan. The loan is to be paid back in one lump-sum payment at the end of 2025. The interest rate on the loan is 8% and interest payments are made semi-annually. How will this loan be reflected on the 2021 Balance Sheet?

4. On December 1, 2020, a retailer signed a contract with a manufacturer to deliver 100 items of inventory on January 5, 2021. The contract price was $40,000 ($400 per unit) and the retailer made the full payment on December 15, 2020. The manufacturer produced the goods and had them sitting in finished goods on December 29, 2020. This sale did NOT meet the requirements for a bill-and-hold. The manufacturer has a December 31 year-end.

How much deferred revenue related to this transaction will be included in the manufacturers 2020 balance sheet?