Action, Inc. acquired the following assets and assumed the related liabilities of Slacker Corp. in atransaction completed on February 16, 2023:Accounts receivable, netInventoriesProperty, plant & equipmentNon-amortizable intangible assetsCarrying valuefor SlackerCurrent liabilitiesNoncurrent liabilities$ 11,000$ 50,000$100,000$ 200,000Fair Value$ 10,000$ 50,000$ 150,000$ 225,000$ (40,000)$(200,000)$ (40,000)$(200,000)Action paid $205,000 in cash for all of the above from Slacker.a) Determine if Action must record any goodwill. Show any calculations.b) Record the acquisition in Action's general journal on Feb. 16, 2023. Show: any calculations.c) Prepare any adjusting entry for amortization required as of the fiscal year end, December 31,2023. If no amortization is required, explain why.

a) To determine if Action must record any goodwill, we need to compare the fair value of Slacker's…

a) Determine if Action must record any goodwill. Show any calculations. b) Record the acquisition in Action's general journal on Feb. 16, 2023. Show: any calculations. c) Prepare any adjusting entry for amortization required as of the fiscal year end, December 31, 2023. If no amortization is required, explain why.

a) Determine if Action must record any goodwill. Show any calculations. b) Record the acquisition in Action's general journal on Feb. 16, 2023. Show: any calculations. c) Prepare any adjusting entry for amortization required as of the fiscal year end, December 31, 2023. If no amortization is required, explain why.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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