Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 2, 2024, a company purchased a franchise for $585,000 by signing a five-year contract. At the end of the five years, the franchise

image text in transcribed
On June 2, 2024, a company purchased a franchise for $585,000 by signing a five-year contract. At the end of the five years, the franchise right reverts back to the seller. On September 1, 2026, the company decides to sell the franchise right for $339,000. The company amortizes intangible assets using In 2023, Antle Incorporated had acquired Demski Company and recorded goodwill of $245 million as a result. The net assets (including goodwill) from the straight-line method and records partial-year amortization based on the number of months in service. Assuming the company has a December 31 Antle's acquisition of Demski Company had a 2024 year-end book value of $580 million. Antle assessed the fair value of Demski reporting unit at this date to be $700 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The year-end, what is the gain or loss reported on the sale of the patent? amount of the impairment loss that Antle would report for goodwill at the end of 2024 is: Multiple Choice Multiple Choice $17,250 gain $0 O $105,000 gain $95 million. O $246,000 loss $120 million . $12,000 loss O $150 million . Juliana Corporation purchased all of the outstanding stock of Caldwell Incorporated, paying $4,500,000 cash. Juliana assumed all of the liabilities of Caldwell. Book values and fair values of acquired assets and liabilities were: An asset was acquired on October 1, 2024, for $78,000 with an estimated five-year life and $13,000 residual value. The company uses units-of- Book Value Fair Value production depreciation and expects the asset to produce 20,000 units. Actual production was: 2024 = 500 units; 2025 = 3,000 units; 2026 = 3,500 Current assets (net) $ 410, 000 $ 540, 000 units; 2027 = 1,000 units. What is the gain or loss if the asset was sold for $58,000 on March 31, 2027? Property, plant, & equpiment (net) 1, 520, 000 2, 240, 000 Liabilities 440, 000 750, 000 Juliana would record goodwill of: Multiple Choice Multiple Choice $19,000 gain $7,330,000 . $6,000 gain O $310,000. $11,200 gain O $2,470,000. O $12,500 gain $2,900,000

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_2

Step: 3

blur-text-image_3

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

Modern Advanced Accounting In Canada

Authors: Murray Hilton

6th Edition

0070001537, 978-0070001534

More Books

Students also viewed these Accounting questions

Question

1. Eat lunch with a different group of students every day.

Answered: 1 week ago

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago