Tico's Restaurants acquired Dave's Diner. The financial records of Dave's Diner included: Book Value of Assets ..............................................
Question:
Tico's Restaurants acquired Dave's Diner. The financial records of Dave's Diner included:
Book Value of Assets .............................................. $510,000
Market Value of Assets .............................................. 560,000
Market Value of Liabilities .......................................... 250,000
Requirements
1. Make the journal entry to record Tico's Restaurants' purchase of Dave's Diner for $380,000 cash, including any goodwill.
2. How should Tico's Restaurants account for this goodwill after acquiring Dave's Diner? Explain in detail.
GoodwillGoodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
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Req 1 Journal DATE ACCOUNTS POST REF Dr Cr Assets 560000 Goodwi...View the full answer
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Rustia Melrod
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