Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me with this question, make sure to answer all for a up vote and a good comment. i dont have any questions left

please help me with this question, make sure to answer all for a up vote and a good comment. i dont have any questions left for this month so plz help. thanks!
image text in transcribed
image text in transcribed
image text in transcribed
Mitre Company acquired Midwest Transportation Co. for $1,400,000. The fair market values of the assets acquired were as follows. No liabilities were assumed. Required Calculate the amount of goodwill purchased. Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1 , Year 1 : During Year 1, the machine produced 55,000 units and during Year 2, it produced 57,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods: Tower Company owned a service truck that was purchased at the beginning of Year 1 for $41,000. It had an estimated life of three years and an estimated salvage value of $2,000. Tower company uses straight-line depreciation its financial condition as of January 1 , Year 3 , is shown on the first line of the horizontal statements model. In Year 3. Tower Company spent the following amounts on the truck: Jan. 4 overhauled the engine for $6,900. The estimated 11 fe was extended one additional year, and the salvage volue uas revised to $1,009 July 6 0btained oil change and transmission service, $340. Aug. 7 replaced the fan belt and battery, $440. Dec, 31 Purchased gasoline for the year, $8,400. 31 Recognized Year 3 depreciation expense. Required a. Record the Year 3 transactions in a statements model. (In the Cosh Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing octivity (FA), or net change in cash (NC); leave the cell blank if the Statement of Cash Flows is not affected. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions