Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can someone tellcme if im doing number one right? i think i add them and get 5250. also need help with problem 2 On January
can someone tellcme if im doing number one right? i think i add them and get 5250. also need help with problem 2 On January 1, 2020, Coldspring Corp. paid $770,000 to acquire Whitt Co. Coldspring used the equity method to account for the investment. The following information is available for the assets, liabilities, and stockholders' equity accounts of White Book Value Fair Value Current assets $95,000 $95,000 Land 95,000 120,000 Building (twenty year life) 255,000 310,000 Equipment (five year life) 185,000 190,000 Current liabilities 40,000 40,000 Long-term liabilities 65,000 65,000 Common stock 140,000 Additional paid-in capital 300,000 Retained earnings 210,000 Whitt earned net income for 2020 of $125,000 and paid dividends of $18,000 during the year. 1. What is the AAP amortization expense for 2020? Building: (310,000-225,000)/20= 4250 Equipment: (190,000-185,00075= 1,000 2 . On July 1, 2019, Captain Company paid $3,000,000 for all of the common stock of Bright Sunshine, Inc. Bright Sunshine's identifiable net assets had a fair value of $2,850,000 at that date. After acquisition, Bright Sunshine was identified as a reporting unit and the goodwill from the acquisition was assigned to that reporting unit. Compute the amount of goodwill, if any, from the acquisition
can someone tellcme if im doing number one right? i think i add them and get 5250. also need help with problem 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started