from operating activities if the indirect method is used. 1. Goodwill impairment $400,000. 2. Issued $900,000 note payable in exchange for land and building of the same value. 3. Depreciation and amortization expense $250,000. 4. Exchange $500,000 patent for $500,000 stock investment. 5. Stock-based compensation to employees $200,000. 6. Issued $700,000 par value common stock upon conversion of bonds having a face value of $700,000. 7. Loss on sale of equipment $50,000. 8. Unrealized gain on equity securities $150,000. $900,000 $850,000 $750,000 $700,000

from operating activities if the indirect method is used. 1. Goodwill impairment $400,000. 2. Issued $900,000 note payable in exchange for land and building of the same value. 3. Depreciation and amortization expense $250,000. 4. Exchange $500,000 patent for $500,000 stock investment. 5. Stock-based compensation to employees $200,000. 6. Issued $700,000 par value common stock upon conversion of bonds having a face value of $700,000. 7. Loss on sale of equipment $50,000. 8. Unrealized gain on equity securities $150,000. $900,000 $850,000 $750,000 $700,000

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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Item 22 Below is information relative to an exchange of similar assets by a company. Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid $ 49,700 $ 60,500 $ 14,100 The company would record the new equipment at:
7. JBC purchased an ongoing business for P10,000,000 cash. The assets and liabilities of the acquired business measured at fair value are: Cash Accounts Receivable Inventory Land Plant and equipment Accounts Payable Bonds Payable 525,000 c. P 625,000 d. P 400,000 2,075,000 2,500,000 4,125,000 6,065,000 (895,000) What is the amount of gain on bargain purchase? a. P 500,000 b. P 550,000 (3,895,000)
Kansas Company acquired a building valued at $158,000 for property tax purposes in exchange for 12,000 shares of its $3 par common stock. The stock is widely traded and selling for $19 per share. At what amount should the building be recorded by Kansas Company? a. $228,000 b. $36,000 OC. $158,000 Od. $191,500
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8. Kopi Company acquired all of the outstanding ordinary shares of an acquiree paying P9,000,000 cash. The carrying amount and fair value of the assets and liabilities of the acquiree were: Carrying amount Fair Value Accounts receivable P 1,500,000 Inventory 4,800,000 Land 7,500,000 Property and Equipment 2,500,000 Accounts payable 2,500,000 Bonds Payable 1,900,000 P 1,200,000 3,000,000 5,000,000 2,000,000 2,500,000 1,500,000 What amount should be recognized as goodwill or negative goodwill? a. P 1,900,000 b. P-1,900,000 c. P 2,900,000 d. P-2,900,000
6.
Assume a company did not purchase any equipment during the year, but it did sell a piece of equipment that had an original cost of $500.000 and accumulated depreciation of $300,000. The gain on the sale was $23.500 Based solely on the information provided, the company's net cash provided by (used in investing activities would be Multiple Choice $200,000 $276.500 $223,500 $247000
26. Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $13,280,000 in cash. The book value of Smith’s net assets (assets minus liabilities) was $9,700,000. The fair values of all of Smith’s assets and liabilities were equal to their book values with the following exceptions: Book Value Fair Value Receivables $ 3,200,000 $ 2,810,000 Property, plant, and equipment 9,900,000 11,490,000 Intangible assets 390,000 1,580,000 Required:Calculate the amount paid for goodwill.
COTB MC Qu. 15-70 (Algo) Assume a company sold a... Assume a company sold a piece of equipment that had an original cost of $500,000 and accumulated depreciation of $300,000. The gain on the sale was $21,000. In addition, the beginning and ending balances in the company's Property, Plant, and Equipment account were $4,700,000 and $4,600,000, respectively. Based solely on the information provided, the company's net cash provided by (used in) investing activities would be: Multiple Choice $(179,000). $(200,000). O $(158,000). $(121,000).
Identy the type(s) of gain or loss that would be recognized on the following asset sales as capital, Section 1231, Ordinary, Section 1245 recapture, Section 291 recapture, or Section 125 unrecaptred gain. a. gain on the sale of stock by an individual ________________ b. gain on the sale of a building used for 15 years by a corporation_____________ c. gain on the sale of a machine used by a business for four years sold at a price less that its original cost____________________ d. gain on the sales of inventory______________________ e. loss on the sale of equipmment used in a business for three years_________ f. gain on the sale of a machine used by a business for 11 months__________ g. Loss on th factoring of receivables______________ h. gain on sales of a building used by a sole proprietorship for eight years in excess of its original cost._______________________
On January 1, 20X1, Hermione, Inc., an SME, paid cash of P600,000 for all the outstanding shares of Weasley Company. The carrying value of the assets and liabilities of Weasley on January 1, 20X1 follows:Accounts Receivable 90,000Inventory 180,000Property & Equipment (net of Accumulated Depreciation of P220,000) 320,000Goodwill 100,000Liabilities 120,000Net income of Hemione and Weasley for 20X1 amounted to P200,000 and P80,000, respectively. Hermione received dividend of P25,000 from Weasley during 20X1. The Property & Equipment has original useful life of 10 years and was already held for 4 years as of date of acquisition.How much…
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