D. Star Company purchases Stripe Inc. for $13,985,000 cash on January 1, 2024. The book value of Stripe Inc. net assets reported on its December 31, 2023 statement of financial position was $12,620,000. Star’s December 31, 2023 analysis indicated that the fair value of Stripe’s tangible assets exceeded the book value by $560,000, and the fair value of identifiable intangible assets exceeded book value by $245,000.How much goodwill should be recognized by Star Company when recording the purchase of Stripe Inc.? $ E. Benz Co. incurred research and development costs in 2024 as follows:Materials used in research and development projects$ 450,000Equipment acquired that will have alternate future uses in future research and development projects3,000,000Depreciation for 2024 on above equipment300,000Personnel costs of persons involved in research and development projects750,000Consulting fees paid to outsiders for research and development projects300,000Indirect costs reasonably allocable to research and development projects225,000Total$5,025,000Assume economic viability has not been achieved.What amount of research and development costs should be charged to Benz’s 2024 income statement? $ Instruction: Answer ALL questions.- Set financial calculator to zero decimal place.

D. Goodwill Calculation for Star Company:Goodwill is calculated as the excess of the purchase price…

Answered: Instruction: Answer ALL questions. -…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 8EB: Identify the normal balance for each of the following accounts. Choose Dr for Debit; Cr for Credit....

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Question

Star Company purchases Stripe Inc. for $13,985,000 cash on January 1, 2024. The book value of Stripe Inc. net assets reported on its December 31, 2023 statement of financial position was $12,620,000. Star’s December 31, 2023 analysis indicated that the fair value of Stripe’s tangible assets exceeded the book value by $560,000, and the fair value of identifiable intangible assets exceeded book value by $245,000.

How much goodwill should be recognized by Star Company when recording the purchase of Stripe Inc.? $

Benz Co. incurred research and development costs in 2024 as follows:

Materials used in research and development projects	$ 450,000
Equipment acquired that will have alternate future uses in future research and development projects	3,000,000
Depreciation for 2024 on above equipment	300,000
Personnel costs of persons involved in research and development projects	750,000
Consulting fees paid to outsiders for research and development projects	300,000
Indirect costs reasonably allocable to research and development projects	225,000
Total	$5,025,000