Core Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Core purchased goodwill as part of the acquisition of Shipley Wireless Enterprises, which had the following figures:(Click the icon to view the data.)RequirementsJournalize the entry to record Core's purchase of Shipley Wireless for $480,000 cash plus a $720,000 note payable.1.2.What special asset does Core's acquisition of Shipley Wireless identify? How should Core Telecom account for this asset after acquiring Shipley Wireless? Explain in detail.Requirement 1. Journalize the entry to record Core's purchase of Shipley Wireless for $480,000 cash plus a $720,000 note payable. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)Accounts and ExplanationDateDebitCreditRequiremeAssetsEquityCashWhat specialusGain on DisposalGoodwillLiabilitiesLoss on DisposalNotes Payabley? How should Core Telecom account for this asset after acquiring Shipley Wireless? Explain in detail. Requirement 2. What special asset does Core's acquisition of Shipley Wireless identify? How should Core Telecom account for this asset after acquiring Shipley Wireless? Explain in detail.What special asset does Core's acquisition of Shipley Wireless identify?The acquisition identifies the assetHow should Core Telecom account for this asset after acquiring Shipley Wireless? Explain in detail.Core should measure theof this asset each year. If this asset has increased in value, Core shouldChoose from any list or enter any number in the input fields and then continue to the next question.If the value of the asset has decreased, Core should

Journal entry:The monetary transaction of business is recorded in the books of accounts called the…

Core Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Core purchased goodwill as part of the acquisition of Shipley Wireless Enterprises, which had the following figures: (Click the icon to view the data.) Requirements 1. Journalize the entry to record Core's purchase of Shipley Wireless for $480,000 cash plus a $720,000 note payable. 2. What special asset does Core's acquisition of Shipley Wireless identify? How should Core Telecom account for this asset after acquiring Shipley Wireless? Explain in detail. Requirement 1. Journalize the entry to record Core's purchase of Shipley Wireless for $480,000 cash plus a $720,000 note payable. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Date Debit Credit

Core Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Core purchased goodwill as part of the acquisition of Shipley Wireless Enterprises, which had the following figures: (Click the icon to view the data.) Requirements 1. Journalize the entry to record Core's purchase of Shipley Wireless for $480,000 cash plus a $720,000 note payable. 2. What special asset does Core's acquisition of Shipley Wireless identify? How should Core Telecom account for this asset after acquiring Shipley Wireless? Explain in detail. Requirement 1. Journalize the entry to record Core's purchase of Shipley Wireless for $480,000 cash plus a $720,000 note payable. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Date Debit Credit

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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Painted Desert has acquired several companies. Assume that Painted Desert purchased Oak Tree Unlimited for $14,000,000 cash. The book value of Oak Tree Unlimited's assets is $14,000,000 (fair value, $15,000,000), and it has liabilities of $13,000,000 (fair value, $13,000,000). Requirements 1. Compute the cost of goodwill purchased by Painted Desert. 2. Record the purchase of Oak Tree Unlimited by Painted Desert. Requirement 1. Compute the cost of goodwill purchased by Painted Desert. Purchase price to acquire Oak Tree Unlimited Fair value of Oak Tree Unlimited's assets Less: Fair value of Oak Tree Unlimited's liabilities Less: Fair value of Oak Tree Unlimited's net assets Goodwill Requirement 2. Record the purchase of Oak Tree Unlimited by Painted Desert. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit…
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Sunland Homes Company is considering the acquisition of Oriole, Inc. early in 2025. To assess the amount, it might be willing to pay. Sunland Homes makes the following computations and assumptions. A B Oriole, Inc. has identifiable assets with a total fair value of $15,030,000 and liabilities of $8,815,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 30% higher than book value, and land with a fair value 75% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Oridle, Inc. Oriole, Inc's pretax incomes for the years 2022 through 2024 were $1,200,900, $1,500,800, and $955,000, respectively. Sunland Homes believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments to the following items included in pretax eamings: Depreciation on buildings (each year) C 962,900…
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