289) Parent Co. purchased the entire business of Subsidiary Co. including all its assets and liabilities for $600,000. Below is information related to the two companies: Parent Subsidiary Fair value of assets $1,050,000 $800,000 Fair value of liabilities 575.000 300,000 Reported assets 800,000 650,000 Reported liabilities 250,000 Net Income for the year 60,000 50,000 How much goodwill did Parent pay for acquiring Subsidiary? B) $200,000. A) $150,000 C) $300,000. 290) On January 1,2018, ABC purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual $8,000. Assume the truck was totaled in an accident on December 31, 2019. What amount of gain or loss should ABC record on December 31, 2019? value of Los,$38,000D) Gain,$5,000 B) Loss, $3,000. A) Loss, $18,000. C) Loss, 291) When treasury stock is resold at a price above cost: A) Additional Paid-in Capital is increased. C) A revenue account is credited. B) A loss is reported. D) A gain account is credited. 292) ABC has beginning inventory for the year of $12,000. During the year, ABC purchases inventory for $150,000 and ends the year with $20,000 of inventory. ABC will report cost f goods' sild equal to: A) S150,000. es diial value i D) $158,000: in C) $170,000. B) $142,000 293) When a company issues 25,000 shares of S1 par value common stock for $10 per share, the jourhal entry for this issuance would include: A) A credit to Common Stock for $250,000. B) A debit to Cash for $25,000. C) A debit to Additional Paid-in Capital for $25,000. D) A credit to Additional Paid-in Capital for $225,000 lited. ses inverts ry 294) Depletion is the expense A) when using up an intangible asset C) when using up a building B) when using up a natural resource D) when goodwill dies s 5839. 40