A purchased B, paying $850,000 cash. The books values and fair values of acquired assets and liabilities were: Book asset - Fair Value Current assets net: $130,000 - $125,000 Property, plant, equip: 600,000 - 750,000 Liabilities: 175,000 - 175000 A would record goodwill of: A. $0. B. $150,000 C. $345,000 D. $850,000

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A: Solution: Cost at which new equipment will be recorded = Fair market value of the new equipment =…

Q: A fixed asset with a cost of $50,207 and accumulated depreciation of $42,676 is traded for a similar…

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Q: A fixed asset with a cost of $36,671 and accumulated depreciation of $33,004 is traded for a similar…

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Q: Company A purchased Company B for $156 cash. At the time of purchase, Company B had the following…

A: Lets understand the basics. When purchaser paid more than the net asset of the company then goodwill…

Q: Bovine Ltd. has the following assets in a CGU:     Carrying Value (thousands) Equipment   $ 861…

A: Impairment loss occurs when the carrying value of an asset exceeds its recoverable amount.If an…

Q: provide right answer

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Q: 2. ABC Ltd acquired a property on 1 January 2004 at a cost of 4 GH¢00,000 and immediately occupied…

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or…

Q: Sansoni Services exchanged an asset with cost of $20,000 (now 30% depreciated) for a similar asset…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

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Q: The following information is available for a Company's asset: Cost $5,350,000; Carrying amount (book…

A: Impairment of assets means when recoverable amount of the asset is less than carrying value of the…

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A: If there was no capital expenditure, PP&E would be $410,000 ($500,000 - $90,000). But the…

Q: Bovine Ltd. has the following assets in a CGU:     Carrying Value (thousands) Equipment   $ 861…

A: Impairment of asset is weakening of value of asset. In other words when the value of asset decreases…

Q: 30. Lake Incorporated purchased Huron Company for $850,000 cash. Lake assumed all of the…

A: Goodwill is an intangible asset that provides future economic benefits. The goodwill on the business…

Q: A fixed asset with a cost of $54,589.00 and accumulated depreciation of $46,400.65 is traded for a…

A: The correct option is $2,248.35.

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Q: A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 Land: carrying…

A: Solution: Fair value of net asset of B Ltd = ($390,000 + $95,000 - $70,000)  - $195,000  =$200,000