Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Little Corporation acquired 60 percent of Lord Enterprises on June 1, 20x5. At that date, Lord had inventory with a market value 80000 greater than

Little Corporation acquired 60 percent of Lord Enterprises on June 1, 20x5. At that date, Lord had inventory with a market value 80000 greater than book value and plant assets (net) with a market value of 192000 greater than book value. The estimated remaining life of the inventory and the plant assets are four months and 10 years, respectively. What is the amount of purchase differential amortization is recognized in worksheet elimination number 3 in 20x5?

a. Cost of Goods Sold 80000 debit; Depreciation Expense 11200 debit

b. Cost of Goods Sold 80000 credit; Depreciation Expense 11200 credit

c. Cost of Goods Sold 80000 debit; Depreciation Expense 19200 debit

d. Cost of Goods Sold 80000 credit; Depreciation Expense 19200 credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Audit Standard Requirements

Authors: Gerardus Blokdyk

1st Edition

0655170898, 978-0655170891

More Books

Students also viewed these Accounting questions

Question

What are your options besides a rote memory approach?

Answered: 1 week ago