Intermediate Accounting

B D Question Two Alpha Corporation purchased Beta Corporation for $1,000,000 on December 31, 2019. At the time of purchase, Beta had the following assets and liabilities listed on its balance sheet; 2 these assets and liabilities also had the following fair values: 3 Account Book Value Fair Value 4 Cash $ 100,000 $ 100,000 5 Accounts Receivable 150,000 150,000 6 Inventory 250,000 225,000 7 Patents 140,000 125,000 8 Equipment 250,000 350,000 9 Accounts Payable 40,000 40,000 10 Notes Payable 110,000 110,000 11 Part One Record the December 31st, 2019 journal entry to record Alpha's purchase of Beta 12 Corporation. 13 14 15 16 17 31-Dec 18 19 20 21 22 23 Patent Goodwill Part Two Amortization Revision Ready A B B D 31-Dec Part Two b) On December 31, 2020, Alpha Corporation did an impairment check on the net assets of the Beta Subdivision. As of this date, the Beta Subdivision's net assets had a fair market value of $950,000. Book 24 the journal entry to record the impairment of Goodwill related to the Beta Subdivision 25 Fair Value $ 950,000 26 Less: Carrving Amount, net of Goodwill 27 Implied Goodwill 28 Less: Carrying value of Goodwill 29 Loss on impairment 30 31 32 33 34 Patent Goodwill Amortization Revision Ready