Required information P8-7 (Algo) Computing Goodwill from the Purchase of a Business and Related Depreciation and Amortization LO8-3, 8-6 [The following information applies to the questions displayed below.] The notes to a recent annual report from Suzie's Shoe Corporation indicated that the company acquired another company. Steve's Shoes, Incorporated. Assume that Suzie's acquired Steve's Shoes on January 5 of the current year. Suzie's acquired the name of the company and all of its assets for $517,000 cash. Suzie's did not assume the liabilities. The transaction was closed on January 5 of the current year, at which time the balance sheet of Steve's Shoes reflected the following book values. An independent appraiser estimated the following market values for the assets. P8-7 Part 2 2. Compute the adjustments that Suzie's Shoes Corporation would make at the end of the current year (ending December 31 ) for the following items acquired from Steve's Shoes: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 2. Compute the adjustments that Suzie's Shoes Corporation would make at the end of the current year (ending December 31 ) for the following items acquired from Steve's Shoes: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. a. Depreciation of the fixed assets (straight line), assuming an estimated remaining useful life of 7 years and no residual value. b. Goodwill (an intangible asset with an indefinite life). Journal entry worksheet Record the straight-line depreciation of fixed assets, assuming an estimated remaining useful life of 7 years and no residual value. Note: Enter debits before credits. 2. Compute the adjustments that Suzie's Shoes Corporation would make at the end of the current year (ending December 31 ) for the following items acquired from Steve's Shoes: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. a. Depreciation of the fixed assets (straight line), assuming an estimated remaining useful life of 7 years and no residual value. b. Goodwill (an intangible asset with an indefinite life). Journal entry worksheet Record amortization of the goodwill (an intangible asset with an indefinite life). Note) Enter debits before credits