Question
ALT-RECORDINGGOODWILLTOTALSCORE:0/10Thereare5problemsinthisset.Chooseanumberbetween1and5:1LINEDATEGENERALJOURNALDEBITCREDITGRADEDateTransaction11/1/201701/1/2017WhaleCompanyissued1,000,000sharesof$1.00parcommonstock20atpar.343/31/201703/31/2017WhaleCompanypaid$600,000toacquireMinnowCompany.50Atthetimeofthepurchase,Minnow'sassetsandliabilitieswereasfollows:60CASH100,00070ACCOUNTSRECEIVABLE40,00080INVENTORY60,00090LAND80,000100BUILDINGS140,000110NOTESPAYABLE70,000WhaledeterminedthattheLandhadafairmarketvalueof$100,000TRIALBALANCEDEBITCREDITandthattheBuildinghadafairmarketvalueof$200,000.CASHTheotherassetsrequirednoadjustment.ACCOUNTSRECEIVABLEINVENTORYRecordallassetsandliabilitiesatoriginalcostorfairmarketvalue,LANDwhicheverisgreater.RecordthecashpaymentbyWhale.AnyBUILDINGSdifferenceistobedebitedtoGoodwillonthebooksofWhale.GOODWILLWhaleassumestheliabilityfortheNotePayable.NOTESPAYABLECOMMONSTOCKRemarks:Intheolddays,theGoodwillwastypicallyamortizedstraight-lineoveraperiodTOTALS00of40years.Today,Goodwillisnotamortizedunlessitisimpaired,inwhichINBALANCEcase,anentryismadetorecordaLossfromImpairmentofGoodwill,withacredittoGoodwill.Agoodquestiontoaskisthis:ifacompanypaysmoreforacompanythanitactuallyisworth(intermsoffutureprofits),istheextraamountpaidreallyanasset?Or,wastheacquiringcompanyunwiseinpayingsomuchfortheacquiree? can you please use excel for the answer?
ALT-RECORDINGGOODWILLTOTALSCORE:0/10Thereare5problemsinthisset.Chooseanumberbetween1and5:1LINEDATEGENERALJOURNALDEBITCREDITGRADEDateTransaction11/1/201701/1/2017WhaleCompanyissued1,000,000sharesof$1.00parcommonstock20atpar.343/31/201703/31/2017WhaleCompanypaid$600,000toacquireMinnowCompany.50Atthetimeofthepurchase,Minnow'sassetsandliabilitieswereasfollows:60CASH100,00070ACCOUNTSRECEIVABLE40,00080INVENTORY60,00090LAND80,000100BUILDINGS140,000110NOTESPAYABLE70,000WhaledeterminedthattheLandhadafairmarketvalueof$100,000TRIALBALANCEDEBITCREDITandthattheBuildinghadafairmarketvalueof$200,000.CASHTheotherassetsrequirednoadjustment.ACCOUNTSRECEIVABLEINVENTORYRecordallassetsandliabilitiesatoriginalcostorfairmarketvalue,LANDwhicheverisgreater.RecordthecashpaymentbyWhale.AnyBUILDINGSdifferenceistobedebitedtoGoodwillonthebooksofWhale.GOODWILLWhaleassumestheliabilityfortheNotePayable.NOTESPAYABLECOMMONSTOCKRemarks:Intheolddays,theGoodwillwastypicallyamortizedstraight-lineoveraperiodTOTALS00of40years.Today,Goodwillisnotamortizedunlessitis"impaired",inwhichINBALANCEcase,anentryismadetorecordaLossfromImpairmentofGoodwill,withacredittoGoodwill.Agoodquestiontoaskisthis:ifacompanypaysmoreforacompanythanitactuallyisworth(intermsoffutureprofits),istheextraamountpaidreallyanasset?Or,wastheacquiringcompanyunwiseinpayingsomuchfortheacquiree?
can you please use excel for the answer?
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