MiddleTelecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Middle purchased goodwill as part of the acquisition of Shipley Wireless Enterprises, which had the following figures:

Book Value of Assets 750,000

Market Value of Assers 900,000

Market Value of Liabilities 550,000

Requirement 1. Journalize the entry to record Middle's purchase of Shipley Wireless for $ 400,000 cash plus a $600,000 note payable. (Record debits first, then credits).

Date			Accounts and Explanation	Debit	Credit

Requirement 2. What special asset does Middle's acquisition of Shipley Wireless identify? How should Middle

Telecom account for this asset after acquiring Shipley Wireless? Explain in detail.

What special asset does Middle's acquisition of Shipley Wireless identify?

The acquisition identifies the asset (select the correct answer; goodwill patents property, plant and equipment, receivable sor trademarks) How should Middle Telecom account for this asset after acquiring ShipleyWireless? Explain in detail.Middle should measure the (select the correct answer; fair value, historic cost, or net cost) of this asset each year. If this asset has increased in value, Middle should (select the correct answer; amortize the goodwill, record a loss and write down goodwill or record nothing) If the value of the asset has decreased, Middle should (select the correct answer; amortize the goodwill, record a loss and write down goodwill or record nothing)