E12.13 (LO 3) (Accounting for Goodwill) On July 1, 2022,Brandon SE purchased Mills Company by paying €250,000 cash andissuing a €150,000 note payable. At July 1, 2022, the statement offinancial position of Mills Company was as follows.Buildings (net)€ 75,000 Equity€235,000Equipment (net)70,000 Accounts payable 200,000Trademarks10,000€435,000Land40,000Inventory100,000Accounts receivable90,000Cash50,000€435,000The recorded amounts all approximate current values except for land(fair value of €80,000), inventory (fair value of €125,000), andtrademarks (fair value of €15,0o0).Instructionsa. Prepare the July 1 entry for Brandon to record the purchase.b. Prepare the December 31 entry for Brandon to recordamortization of intangibles. The trademarks have an estimateduseful life of 4 years with a residual value of €3,000.

a. Prepare the July 1 entry for Brandon to record the purchase. b. Prepare the December 31 entry for Brandon to record amortization of intangibles. The trademarks have an estimated useful life of 4 years with a residual value of €3,000.

a. Prepare the July 1 entry for Brandon to record the purchase. b. Prepare the December 31 entry for Brandon to record amortization of intangibles. The trademarks have an estimated useful life of 4 years with a residual value of €3,000.

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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