Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1.2025. Ivanhoe Corporation acquired Oriole Company for $936,000cash. At the time of purchase, Oriole's balance sheet showed assets of $806,000 and liabilities of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On July 1.2025. Ivanhoe Corporation acquired Oriole Company for $936,000cash. At the time of purchase, Oriole's balance sheet showed assets of $806,000 and liabilities of $260,000. The fair value of Oriole's assets is estimated to be $988,000. (a) Compute the amount of goodwill acquired by lvanhoe. Amount of goodwill A machine that cost $1,004,000 was purchased on April 1,2025. Its estimated salvage value is $100,400 and its expected useful life is eight years. (a1) Calculate the depreciation expense by straight-line for 2025. (Round answer to 0 decimal places, es. 5,275) Depreciation expense $ Bluc Co. had a sheet metal cutter that cost $107,000 on January 5,2021. This old cutter had an estimated life of ten years and a salvage value of $18,000. On April 3, 2026, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Blue also received $15,000cash. Assume that the last fiscal period ended on December 31.2025 , and that straight-line depreciation is used. Sunland, Inc, purchased equipment in 2024 for $887000. Two years later it became apparent to Sunland that this equipment had suffered an impairment of value. In early 2026 , the book value of the asset is $586000 and it is estimated that the fair value is now only $359000. The entry to record the loss on impairment is Loss on impairment Accumulated Depreciation-Equipment Retained Earnings Accumulated Depreciation-Equipment 227000 227000 227000 227000 No entry is necessary as a write-off violates the historical cost principle. Retained Earnings 227000 Reserve for Loss on impairment 227000 Concord Resources Company acquired a tract of land containing an extractable natural resource. Concord is required by its purchase contract to restore the land to a condition suitable for recreational use atter it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2400000 tons and that the fand will have a value of $980000 after restoration. Relevant cost information follows: If Concord maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material? $309 $3.33 5374 $2.68

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Financial Instruments

Authors: Cormac Butler

1st Edition

0470699809, 978-0470699805

More Books

Students also viewed these Accounting questions

Question

Were multiple treatments used? Did they interfere with each other?

Answered: 1 week ago