Don owns a restaurant in the downtown for 20 years and wanted to sell and retire.He got an offer from Bycol to buy his business for $210,000. The balance Sheet supplied to himwas as under:CashInventoryAccounts ReceivableFurnitureBuilding2,4107,62014,63039,510164,300228,470The fair value calculation of identifiable assets reveal the following:InventoryAccounts ReceivableFurnitureBuildingAccounts Payable5,11013,62519,800Accounts PayableIncome tax payableEmployee taxes payableBank LoanRetained earnings242,00016,320Please calculate the amount of Goodwill / Bargain Price and record the necessary journalentry on the first day after acquisition by Bycol.11,0601,0102,41097,150116,840228,470

When one company acquires another company's business, it typically involves the transfer of…

Don owns a restaurant in the downtown for 20 years and wanted to sell and retire. He got an offer from Bycol to buy his business for $210,000. The balance Sheet supplied to him was as under: Cash Inventory Accounts Receivable Furniture Building 2,410 7,620 14,630 39,510 164,300 228,470 Accounts Payable Income tax payable Employee taxes payable 242,000 16,320 Bank Loan Retained earnings The fair value calculation of identifiable assets reveal the following: Inventory 5,110 Accounts Receivable 13,625 Furniture 19,800 Building Accounts Payable Please calculate the amount of Goodwill/Bargain Price and record the necessary journal entry on the first day after acquisition by Bycol. 11,060 1,010 2,410 97,150 116,840 228,470

Don owns a restaurant in the downtown for 20 years and wanted to sell and retire. He got an offer from Bycol to buy his business for $210,000. The balance Sheet supplied to him was as under: Cash Inventory Accounts Receivable Furniture Building 2,410 7,620 14,630 39,510 164,300 228,470 Accounts Payable Income tax payable Employee taxes payable 242,000 16,320 Bank Loan Retained earnings The fair value calculation of identifiable assets reveal the following: Inventory 5,110 Accounts Receivable 13,625 Furniture 19,800 Building Accounts Payable Please calculate the amount of Goodwill/Bargain Price and record the necessary journal entry on the first day after acquisition by Bycol. 11,060 1,010 2,410 97,150 116,840 228,470

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter6: Losses And Loss Limitations

Section: Chapter Questions

Problem 2CE

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