WITH SOLUTIONS

total to $23.520. E 10-4 2 of the property by WALL Cost of property. Plant, and Equipment Bandol Co. purchases a machine for $23,000, terms 2/10, 160, FOB shipping point. The seller prepaid the $520 freight charges, adding the amount to the invoice and bringing machine requires special steel mounting and power connections costing $1,592. Another 5750 is per to assemble the machine and get it into operation. In moving the machine to its steel mounting, in damages occurred. Materials costing $60 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages. Compute the cost recorded for this machine. Assume Bandol pays for this machine within the cash disco period. 126 000. The estimated Wed 3. -26 How much goodwill will be recorded as part of this acquisition Goodwill On January 1, 2018, Havel Company purchased Nantes Company at a price of $7,500,000. The fair market value of the net assets purchased equals $2,700,000. What is the amount of goodwill that Havel records at the purchase date? 2. Explain how Havel would determine the amount of goodwill amortization on December 31, 2018. 3 Havel Company believes that its employees provide superior customer service, and through their efforts, Havel Company believes it has created $2,750,000 of goodwill. How would Havel Company record this goodwill? 1