Question
Mitre Company acquired Midwest Transportation Co. for $1,400,000. The fair market values of the assets acquired were as follows and no liabilities were assumed. EQUIPMENT
Mitre Company acquired Midwest Transportation Co. for $1,400,000. The fair market values of the assets acquired were as follows and no liabilities were assumed.
| EQUIPMENT | $510,000 |
| LAND | 150,000 |
| BUILDING | 520,000 |
| FRANCHISE (10-YEAR LIFE) | 40,000 |
Required
a. Calculate the amount of goodwill acquired
b. Prepare the journal entry to record the amortization of the franchise fee at the end of year 1.
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Managing Component Based Development In Global Teams
Authors: J. Kotlarsky, I. Oshri
2009 Edition
0230222447, 978-0230201101
