3% Cost of purchasing a copyright 2 long-term receivables 3 Cost of equipment obtained 4 startup losses of a business see pse 8 00:16:37 Research and development costs not separately identifiable Match each of the options above to the items below. Intangible Long term investment in the balance sheet or other assets in the balance sheet 1 Charge as expense in the income statement operating losses in the income statement 1 Property, Plant, and Equipment in the balance sheet Enabled: Intangible assets i Saved Help Save & Exit Robinson Company purchased Franklin Company at a price of $3,790,000. The fair market value of the net assets purchased equals $2,740,000 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 $1,500,000 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? Goodwill Milano Gallery purchases the copyright on a painting for $270,000 on January 1. The copyright is good for 10 more years. The company plans to sell prints for 19 years. e Prepare entries to record the purchase of the copyright on January 1 and its annual amortization on December 31 00:15:54 View transaction list Journal entry worksheet Record the purchase of the copyright on a painting for $270,000 cash. Note: Enter debits before credits. General Journal Date Jan 01 Debit Credit Record entry Clear entry View general journal LUICU algule dssels Saved Help Save & 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, through a sophisticated website, on-line quotes and bookings for travel packages to a variety of ecologically interesting locations. The website will include ratings of the various packages, including video clips of locations and interviews with local experts. YTC will underwrite various packages or place clients with other operators, earning a commission. Initial market research indicates that there is a demand for objective information about travel opportunities and increased purchasing over the Internet. 00:15:39 In 20X8. YTC incurred the following costs in relation to the operation: Manager salaries (half planning) Rented space Software purchased Consultant's fees-graphics design Computer equipment purchased; four-year life Operating costs-heat, power, etc. Travel and research costs re: travel packages Preparation of content Promotion of website to customers $ 495,500 104,850 181,550 145,400 131,000 85,200 112,650 128,035 164,625 The website is just recently up and running at the end of 20X8. The winter months of 20X9 will be the first real test of the viability of the service. Required: 1. Provide recommendations as to how to account for the expenditures listed below. Be specific. On January 12, 2010. Andrew, Inc. acquired Eesa Company in a business combination. As a result of the combination, the following amounts of goodwill were recorded for each of the three reporting units of the acquired company. 00-14:53 Polishing :$60,000 Retail stores $40,000 Financing company $80,000 Near the end of 2010, a new major competitor entered the company's market and Andrew was concerned that this might cause a significant decline in the value of goodwill. Accordingly, Andrew computed the implied value of the goodwill for the three major reporting units on December 31, 2010, as follows: Polishing :$55,000 Retail stores $39.000 Financing company $80,000 Determine the amount of impairment of goodwill that should be recorded by Andrew on December 31, 2010. Multiple Choice $0 $ 6,000 1