Request #1 Prepare the Rolling River Company balance sheet as of 1/1/17 assuming Rolling River Company purchased the Denmark Wheel Company in an ASSET ACQUISITION for $14 million dollars. Provide enough detail for your CEO to understand the accounting.

Include the following:

Calculate (show your work) the amount of goodwill that will be recorded.

Provide the ASSET ACQUISTION journal entry (show separate from the schedule below).

Prepare a schedule showing

Pre-Asset Acquisition 1/1/17 Rolling River Company balance sheet account balances

Adjustments for the ASSET ACQUISTION journal entry

Post-Asset Acquisition 1/1/17 Rolling River Company balance sheet account balances

Other: Denmark Wheel Assets and Liabilities not included in the above balance sheet.

Patent $1,000,000 (Asset)

Brand Name $3,000,000 (Asset)

Lawsuit $1,700,000 (Liability)

Denmart Wheel Galance Sheet Fair Value CurretAssets $ 1,126,616$ 1,126,616 Cash Accounts Receivable Allowarnce for Doubtful Accoumts Prepaid Advertisirg Prepaid Rent Prepaid Computer Service Office Supplies short-term investments OtherAssets $ 2,956,333 $24,0nO$ 2,932,333$ 2,600,000 $ 7,285,631 $ 7,285,631$ 5,000,000 Tolal CurrentAssets $ 11,344,580 Equipmerit Accumulated Depreciation - Equipment Equipmeit- Office Acomulated Depreciation Office Equipmerit Total PP8E $ 8,156,00O $ T26,955 $ $ 887,CCO $50,CCO $ 837,000$ 7,429,045$ 6,250,000 $ 8,266,045 Total Assets $ 19,610,625 liabiiies and Stodtholders' Equity Currentabies Accounts Payable Short-term Notes Payable Salaries Payable $ 2,950,00O$ 2,950,000 $ 1.250.000$1,250,000 Tolal CuretFabies $ 4,200,cca Long-Term Liabilities - Long-Term Deht Tolal abEties $ 5,000,000S 5,000,000 $ 9,200,CCO Stodtholders Equity Common Stock - Par APIC Retaned Eanings $ 1,000,CCO $ 9,000,CCO $ 410,625 $ 10,410,625 $ 19,610,625 $LOO Total Stodtholders Equity Tolal lialbiiies and Sinctholders' Equiy