Question
Mitre Company acquired Midwest Transportation Company for $1,416,100. The fair market values of the assets acquired were as follows. No liabilities were assumed. Equipment $
Mitre Company acquired Midwest Transportation Company for $1,416,100. The fair market values of the assets acquired were as follows. No liabilities were assumed.
| Equipment | $ 327,500 |
|---|---|
| Land | 190,850 |
| Building | 655,300 |
| Franchise (10-year life) | 107,000 |
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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Integrated Auditing Of ERP Systems
Authors: Yusufali F. Musaji
1st Edition
0471235180, 978-0471235187
