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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

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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, Inc. 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 $520,000 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. Steve's Shoes, Ine. January 5 of the current Year Book Value Market value Accounts receivable (net) $ 38,000 $ 38,000 Inventory 219,000 195,000 Fixed assets (net) 38,000 Other assets 9,000 10,000 Total assets $304,000 Liabilities $ 62,000 Stockholders' equity 242,000 Total liabilities and stockholders' $304,000 equity 41,800 Required: 1. Compute the amount of goodwill resulting from the purchase. (Hint: Assets are purchased at market value in conformity with the cost principle.) Goodwill 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: (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 11 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 11 years and no residual value. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet 1 Record amortization of the goodwill (an intangible asset with an indefinite life). Note: Enter debits before credits. General Journal Transaction b. Debit Credit Record entry Clear entry View general Journal

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