o 7 Part 1 of 2 Required Information The following information applies to the questions displayed below! The notes to a recent annual report from Suzie's Shoe Corporation indicated that the company acquired another company. Steve's Shoes, Inc Assume that Suzie's acquired Steve's Shoes on January 5 of the current year Suzie's acquired the name of the company and all of its assets for $519,000 cash. Suzie's did not assume the abilities. The transaction was closed on January 5 of the current year, at which time the balance sheet of Steve's Shoes reflected the following book values. An Independent appraiser estimated the following market values for the assets 10 points Steve's Shoes, Inc. January 5 of the current Year BOOK Value Accounts receivable (net) $ 48,000 Inventory 217.000 Fixed assets (net) 21,000 other assets 5,000 Total assets $ 291,000 Liabilities 5 71,000 stockholders' equity 220,000 Total liabilities and stockholders! 5291,000 equity Market value $ 40,00 119,000 35,100 14,000 Required: 1. Compute the amount of goodwill resulting from the purchase. (Hint Assets are purchased at market value in conformity with the cost principle) Goodwo Homework Chapter B 0 Required Information (The following information applies to the questions displayed below) The notes to a recent annual report from Suzie's Shoe Corporation indicated that the company acquired another company, Steve's Shoes, Inc. Assume that Suzie's acquired Steve's Shoes on January 5 of the current year. Suzie's acquired the name of the company and all of its assets for $519,000 cash. Suzie's did not assume the abilities. The transaction was closed on January 5 of the current year at which time the balance sheet or Steve's Shoes reflected the following book values. An independent appraiser estimated the following market values for the assets Part 2 of 2 | 10 points Steve Shoes, The January 5 of the current Year Book Value Accounts receivable (net) $ 45,000 Inventory 217,000 Fixed assets (net) 21,000 other assets 5,00 Total assets $291,000 Liabilities $ 71,000 stockholders' equity 220,000 Total liabilities and stockholders 5291,000 equity market value $ 45,000 189,000 35,100 14,00 Print 2. Compute the adjustments that Suzie's Shoes Corporation would make at the end of the current year (ending December 31) for the following items acquired from Steve's Shoes (if no entry is required for a transaction/event, select "No Journal entry required in the first account field.) Depreciation of the fixed assets (straight line), assuming an estimated remaining userut life of years and no residual value Goodwill con intangible asset with an indefinite life) View transactions Journal entry worksheet
