Required information [The following information applies to the questions displayed below.) Assume that Bold Software acquired Torque Technologies at the end of 2017. This acquisition was accomplished by paying a total of $700,000 in cash to acquire all 25 thousand shares of Torque's outstanding common stock from Torque's shareholders. This purchase price of $28 per share represented a 40% premium over Torque's share price immediately prior to the acquisition. Below is information on the fair market value (at the time of the acquisition) and historical cost (as listed on Torque's pre- acquisition balance sheet) for all of the separately identifiable assets and liabilities acquired from Torque: Account Name Inventory Intangible Assets Property, Plant, and Equipment Current Liabilities Notes Payable Historical Cost (on Torque's Fair Market Value Pre-Acquisition Balance Sheet) $ 10,000 $ 8,000 $ 350,000 $0 $ 100,000 $ 85,000 $ 20,000 $ 20,000 $ 150,000 $ 150,000 Calculate the amount of goodwill that would be recorded by Bold for this acquisition Numeric Response Required information [The following information applies to the questions displayed below.) Assume that Bold Software acquired Torque Technologies at the end of 2017. This acquisition was accomplished by paying a total of $700,000 in cash to acquire all 25 thousand shares of Torque's outstanding common stock from Torque's shareholders. This purchase price of $28 per share represented a 40% premium over Torque's share price immediately prior to the acquisition Below is information on the fair market value (at the time of the acquisition) and historical cost (as listed on Torque's pre- acquisition balance sheet) for all of the separately identifiable assets and liabilities acquired from Torque: Account Name Inventory Intangible Assets Property, Plant, and Equipment Current Liabilities Notes Payable Historical Cost (on Torque's Fair Market Value Pre-Acquisition Balance Sheet) $ 10,000 $ 8,000 $ 350,000 $0 $ 100,000 $ 85,000 $ 20,000 $ 20,000 $ 150,000 $ 150,000 How will the intangible assets (other than goodwill) of Torque be recorded in the journal entry that Bold will make at the time of the acquisition: Multiple Choice Bold will debit Intangible Assets for $350,000 Bold will credit Intangible Assets for $350,000 Bold is not permitted to record the Intangible Assets of Torque. Required information (The following information applies to the questions displayed below) Assume that Bold Software acquired Torque Technologies at the end of 2017. This acquisition was accomplished by paying a total of 5700,000 in cash to acquire all 25 thousand shares of Torque's outstanding common stock from Torque's shareholders. This purchase price of $28 per share represented a 40% premium over Torque's share price immediately prior to the acquisition Below is information on the far market value in the time of the acquisition and historical cost insisted on Torque's pre- acquisition balance sheet) for all of the separately identifiable assets and abilities acquired from Torque: Account Name Inventory Intang ble Assets Property. Plant, and Equipment Current Labs Historical Costjon Torques Fair Market Value Pre-Acquisition Balance Sheet 10000 SB000 $ 350.000 $0 $100.000 383000 $20.000 520000 $ 150,000 $ 150.000 Suppose that God had a total of 2.000.000 in assets prior to the acquisition of Torge Calculate the total assets that would be reported by Bold after correctly recording the purchase of torque Numer Response The following information applies to the questions displayed below) Help Save Assume that Bold Software acquired Torque Technologies at the end of 2017. This acquisition was accomplished by paying a total of $700,000 in cash to acquire all 25 thousand shares of Torque's outstanding common stock from Torque's shareholders. This purchase price of $28 per share represented a 40% premium over Torque's share price Immediately prior to the acquisition Below is Information on the fair market value (at the time of the acquisition and historical cost (as listed on Torque's pre- acquisition balance sheet) for all of the separately identifiable assets and liabilities acquired from Torque: Account Name nventory ntangible Assets Property. Plant, and Equipment Current Liabilities Notes Payable Historical Coston Torque's Fair Market Value Pre-Acquisition Balance Sheet $10,000 $8.000 $ 350,000 $0 $ 100,000 $85.000 $ 20,000 $ 20,000 $150,000 $ 150.000 opose that Bold tested the goodwill from the Torque acquisition for impairment in the following year and determined that their goodwill needed to be written down by $300,000. How would this airment affect Bold's financial statements in the year in which this write down is recorded Multiple Choice Total assets on the balance sheet are unaffected, no loss is recognized on the income statement o Total assets on the balance sheet decrease by $300,000, no loss is recognised on the income Matement Total assets on the balance sheet are unaffected loss of $300,000 is recognized on the income statement O Total assets on the balance sheet decrease by $100.000 a loss of $300,000 is recognised on the income sement
