1. How much has Down Home Foods included for intangibles in its offer of $6,600,000? 2. Assuming Taste-T accepts this offer, which company will report Goodwill on its balance sheet and at what amount?
1. How much has Down Home Foods included for intangibles in its offer of $6,600,000? 2. Assuming Taste-T accepts this offer, which company will report Goodwill on its balance sheet and at what amount?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram Bhai
![M9-12 (Algo) Computing Goodwill and Patents [LO 9-6]
Taste-T Company has been in business for 30 years and has developed a large group of loyal restaurant customers. Down Home
Foods made an offer to buy Taste-T Company for $6,600,000. The market value of Taste-T's tangible assets, net of liabilities, on the
date of the offer is $5,900,000. Taste-T also holds a patent for a fluting machine that the company invented (the patent with a market
value of $350,000 was never recorded by Taste-T because it was developed internally).
Required:
1. How much has Down Home Foods included for intangibles in its offer of $6,600,000?
2. Assuming Taste-T accepts this offer, which company will report Goodwill on its balance sheet and at what amount?
1. Intangibles
2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23949d3e-50b2-478c-a26c-00f434d27e15%2F27cce01d-4755-40d9-926e-6026d8bcc06c%2Fgfac2ld_processed.jpeg&w=3840&q=75)
Transcribed Image Text:M9-12 (Algo) Computing Goodwill and Patents [LO 9-6]
Taste-T Company has been in business for 30 years and has developed a large group of loyal restaurant customers. Down Home
Foods made an offer to buy Taste-T Company for $6,600,000. The market value of Taste-T's tangible assets, net of liabilities, on the
date of the offer is $5,900,000. Taste-T also holds a patent for a fluting machine that the company invented (the patent with a market
value of $350,000 was never recorded by Taste-T because it was developed internally).
Required:
1. How much has Down Home Foods included for intangibles in its offer of $6,600,000?
2. Assuming Taste-T accepts this offer, which company will report Goodwill on its balance sheet and at what amount?
1. Intangibles
2.
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