On 1/1/25 Potato Co. purchased Chip Co. for $100,000. The following is the balance sheet of Chip Co on 1/1/25:

Assets		Book Value
	Cash	$6,000
	Receivables	$10,000
	Inventories	$20,000
	PPE, net	$14,000
Total Assets		$50,000
Liabilities and Owners Equity
	Accounts Payable	$5,000
	Notes Payable	$6,000
	Capital Stock	$15,000
	Retained Earnings	$24,000
Total Liabilities and OE		$50,000

The fair market values of Chip Co.s assets and liabilities resemble their book values at the time of acquisition, with the following exceptions: the fair market value of Chip Cos inventories on 1/1/25 was $5,000 greater than book value, the fair market value of Chip Cos net PPE on 1/1/25 was $10,000 greater than book value, and the fair market value of Chip Co.s Trademark (internally developed) on 1/1/25 was $24,000.

Question 24 (2 points)

The journal entry Potato Co. will record when it purchases Chip Co. will contain a....

Question 24 options:

	debit to Trademark for $24,000
	credit to Trademark for $24,000
	credit to Trademark for $14,000
	no debit or credit to Trademark
	debit to Trademark for $14,000

Question 26 (2 points)

The journal entry Potato Co. will record when it purchases Chip Co. will contain a....

Question 26 options:

	debit to Accounts Payable for $6,000
	no debit or credit to Accounts Payable
	credit to Accounts Payable for $5,000
	debit to Accounts Payable for $5,000
	credit to Accounts Payable for $6,000

Question 27 (2 points)

The journal entry Potato Co. will record when it purchases Chip Co. will contain a....

Question 27 options:

	debit to Notes Payable for $6,000
	credit to Notes Payable for $6,000
	credit to Notes Payable for $5,000
	debit to Notes Payable for $5,000
	no debit or credit to Notes Payable