Jag and rope Co., merged all the assets and liabilities. The company details as follows, Furniture OMR 40,000 & 50,000. Land OMR 60,000 & 40,000. Building OMR 100,000 & 50,000. Vechicle OMR 20,000 & 10,000 and Account payable OMR 40,000 & 60,000. How much value to get after the amalgamate. Select one: a. OMR 370,000 b. OMR 220,000 c. OMR 270,000 d. OMR 180,000
Q: wo independent companies, Denver and Bristol, each own a warehouse, and Denver agrees to pay Bristol…
A: The exchange of assets is calculated on the basis of book value and the fair value of new assets. If…
Q: Dorel Company is being purchased and has the following balance sheet as of the purchase date: $…
A: Net assets of Dorel = Current assets + Fair value of fixed assets - fair value of current…
Q: Hosting Company
A: Step 1: Introduction to Assets:Assets are classified as both financial and non-financial resources…
Q: At the beginning of the current year, Dianne company purchased a tract of land for P6,000,000. The…
A: Total Sales:- It is the value of those goods which are ready for sale in the market including profit…
Q: The following information is for SQU Company: Trademark 56,000, Land 76,000, Building $80,00o,…
A: Current Assets are those assets which can be converted into cash into short period of time like one…
Q: Based on the below, what inferences (make at least two) can you make when comparing the facilities…
A: Accumulated depreciation can be defined as the aggregate expense of a property, plant and equipment…
Q: Hoover Company acquired Burgess Company for $1,200,000 cash. The fair value of Burgess's assets was…
A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…
Q: The balance sheet of Alpha Ltd on 31/12/21 is the following ASSETS Plot of land Building…
A: Balance sheet is one of the financial statement that is prepared to know the financial position of…
Q: Sansoni Services exchanged an asset with cost of $20,000 (now 30% depreciated) for a similar asset…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Concord Pet Care Clinic paid $130,000 for a group purchase of land, building, and equipment. At the…
A: In lump sump purchase, transaction value is allocated in ratio of individual market value of each…
Q: Garcia Company owns equipment that cost $76,800, with accumulated depreciation of $40,800. Record…
A: Journal entries are used to record accounting transactions in chronological order under double entry…
Q: M/s. Al Hilal LLC started with Capital OMR 800,000, Total Tangible Assets OMR 1,000,000 and Current…
A: Calculation of Goodwill as per Capitalized Average profit method: First, calculate Average Profit:…
Q: On January 1, 2000, Bad Kitty, Inc bought Good Dog, LLC for $3,800,000. At the time of purchase Good…
A: 3.1: Journal entry to record Bad Kitty's purchase of Good Dog The journal entry records the purchase…
Q: purchase. An independent appraiser valued the machines as shown below: Clintwood manufacturing…
A: Total Appraised Value of the 3 Machines = KD 84,000 + KD 127,200 + KD 28,800…
Q: Prepare the entry to record the purchase of Sunland Galleries on Moss's books. (Credit account…
A: Golden Rules of Accounting:AccountDebitCreditPersonal AccountsThe ReceiverThe GiverReal AccountsWhat…
Q: On January 1, 20X1, Amber Products Corporation sold land costing $200,000 to its subsidiary, Jerry…
A: Solution:At the end of 20X2, The consolidation needs to eliminate the intercompany profit because…
Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…
A: Consolidation is the merger of two or more entities where one large company acquire share capital of…
Q: Required: Prepare the journal entry to record the transaction for Company A and B
A: At the time of exchange of Asset, business entity derecognize its old asset and record new asset.
Q: Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. Land…
A: Journal entry is the report which is prepared by the entity in order make a record of daily business…
Q: Sitra Company, assuming that the exchange lacks commercial substance. Prepare the necessary journal…
A: 1. In case there is exhange of one asset with another Asset and the Exchange lacks commercial…
Q: Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price…
A: The lump sum paid to acquire various assets can be allocated to particular asset on the basis of…
Q: On July 1, 2020, Hedwig Emporiums purchased Nargle Enterprises by paying $300,000 cash and issuing…
A: Journal entry: This is the first step to record accounts. It is written in the same order in which…
Q: Carver Incorporated purchased a building and the land on which the building is situated for a total…
A: Accounting equation is mathematical equation that shows relationship between assets, liabilities and…
Q: How do I Figure out g and h?
A: In Part C, it is been mentioned that we have to assume that the stock sale information was reported…
Q: None
A: Property, plant, and equipment form a part of the balance sheet disclosing the resources owned by…
Q: Hastings Company has purchased a group of assets for $350,000. The assets and their market values…
A: 1. Identify the total purchase price and market values of the assets.- Purchase Price: $350,000-…
Q: For what amount will LAR record the range?
A: Recording the purchase of an asset is an important ledger entry as it show cases in the balance…
Q: Sam wants to purchase Smith, Inc. The following information is available for Smith from the balance…
A: The business purchase can be defined as a legal agreement between the seller and the buyer in which…
Q: WinCo Foods purchased land and a building for a total price of $2,080,000. Individually, the land…
A: The concept of acquisition cost allocation based on appraised value involves dividing the total…
Q: Lexington Garden Supply paid $160,000 for a group purchase of land, building, and equipment. At the…
A: Step 1:Apportionment of the lumpsum purchase price among the individual asset:AssetMarke…
Q: The following information is for Swifty Real Estate: SwiftyReal Estate Balance Sheet December 31,…
A: Introduction:- Current liabilities means which are are required to settle within a period of 12…
Q: Loop Pole Co., acquired all the assets and current liabilities of North Pole Co.,. The North Pole…
A: Capital reserve (Goodwill) = Total assets excluding goodwill - Total liabilities
Q: Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price…
A: In straight line depreciation method, equal depreciation chareged over the life of…
Q: Two independent companies, Ball and Brown, are in the home building business. Each owns a tract of…
A: Here given the details of the cost of the land and its difference in the Appraisal value of the land…
Q: Ponti Company purchased the net assets of the Sorri Company for $800,000. The book value of the net…
A: Statement of cash flows is one of the financial statement being prepared in business. It shows all…
Q: Pitfeld Sound Center paid 200.000 tor a group purchase of land, bulding, and equipment A the time of…
A: Cost of the Land = Total amount paid x Market value of the Land / Total market value of the assets…
Q: Mazaya Company acquires land for RO 96,000 cash. Additional costs are as follows Removal of shed RO…
A: Acquisition cost of land = Purchase price + Removal of shed costs Filling and grading - Salvage…
Q: ompany purchased . additional cost of P 3,000,000 during the remainder of the year in preparing the…
A: Lot A = 2,40,000 2,40,000/5,00,000 x 100 = 0.48 Lot B = 1,60,000 1,60,000/5,00,000 x 100 =…
Q: Rodriguez Company pays $368,550 for real estate with land, land improvements, and a building. Land…
A: Apportionment cost to assets refers to the process of distributing or allocating expenses or costs…
Q: Rodriguez Company pays $358,020 for real estate with land, land improvements, and a building. Land…
A: Percent of total appraised value for land = Total appraised value/Appraised value of land
Q: Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce…
A: Acquisition refers to the process where one company purchases most or all of another company's…
Q: Illu.1 : A Ltd. acquired B Ltd. Business with the following values. Rs. Fixed Asets 3,00,000…
A: Lets understand the basics. When one company acquire another company then acquirer company gives the…
Q: Rodriguez Company pays $347,490 for real estate with land, land improvements, and a building. Land…
A: " Total cost" describes the entire quantum of plutocrat spent by an association or existent to…
Q: Required information (The following information applies to the questions displayed below.) Rodriguez…
A: Lets understand the basics.When more than one items are acquired in lum sump then appropriation of…
Q: What accounting entry would you do 50:50 joint operation was commenced between two participants.…
A: Journal Entry The purpose of preparing the Journal entry to enter the Correct required transaction…
Jag and rope Co., merged all the assets and liabilities. The company details as follows, Furniture OMR 40,000 & 50,000. Land OMR 60,000 & 40,000. Building OMR 100,000 & 50,000. Vechicle OMR 20,000 & 10,000 and Account payable OMR 40,000 & 60,000. How much value to get after the amalgamate.
Step by step
Solved in 2 steps with 2 images
- Zabinski Co. paid $150,000 for a purchase that included land, building, and office furniture. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Land, $20,000, Building, $150,000, and Office furniture, $30,000. Based on this information the cost that would be allocated to the land is: a. $17,500 b. $20,000 c. $25,000 d. $15,000Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $847,200 cash. The land was appraised at $175,370 and the building at $798,910. Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. b. Would the company recognize a gain on the purchase? c. Record the purchase in a horizontal statements model. d. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar.) Land Building Total Allocated Cost $ 693,000If the company's assets in TL: cash 100.000, accounts receivable 50.000, inventory 150.000, and building 200.000 (market value 300.000) and the liabilities 300.000. If the price paid to acquire company 400.000 TL, how much is the goodwill under market value approach? Select one: a. 100.000 b. 300.000 c. 200.000 d. 150.000
- Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $840,000. The estimated market values of the purchased assets are building, $487,500; land, $302,250; land improvements, $58,500; and four vehicles, $126,750. Required:1-a. Allocate the lump-sum purchase price to the separate assets purchased.1-b. Prepare the journal entry to record the purchase.2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $32,000 salvage value.3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items. Patent with 4 remaining years of legal life $38,600 Goodwill 36,100 Dynamo’s financial condition just prior to the acquisition of these assets is shown in the following statements model. Balance Sheet Income Statement Assets = Liabilities + Stockholders’ Equity Revenue − Expenses = Net Income Statement of Cash Flows Cash + Patent + Goodwill 92,500 + NA + NA = NA + 92,500 NA − NA = NA NA Required Compute the annual amortization expense for these items. Show the acquisition of the intangible assets and the related amortization expense for Year 1 in a horizontal statements model. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1.Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $820,000. The estimated market values of the purchased assets are building, $527,350; land, $308,450; land improvements, $49,750; and four vehicles, $109,450. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to th separate assets purchased. Total cost of Acquisition Allocation of total cost Building Land Land improvements Vehicles Total Estimated Market Value $ 0…
- Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is appraised at $265,000; land improvements are appraised at $79,500; and the building is appraised at $185,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. Land Land improvements Building Totals Appraised Value $ $ 265,000 79,500 185,500 530,000 Percent of Total x Total Cost of Appraised Value Acquisition 50% 15% 35% 100%Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $220,000; land improvements are appraised at $55,000; and the building is appraised at $275,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. Land Land improvements Building Appraised Value Percent of Total x Total Cost of Appraised Value Acquisition = Apportioned CostDetermine the total net free assets.
- Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items.Patent with 4 remaining years of legal life $32,200Goodwill 43,700Dynamo’s financial condition just prior to the acquisition of these assets is shown in the following statements model.Balance Sheet Income StatementAssets= Liabilities +Stockholders’Equity Revenue − Expenses = Net IncomeStatementof CashCash Flows + Patent + Goodwill92,000 + NA + NA = NA + 92,000 NA − NA = NA NARequireda. Compute the annual amortization expense for these items.b. Show the acquisition of the intangible assets and the related amortization expense for Year 1 in a horizontal statements model.c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for yearTimberly Construction makes a lump -sum purchase of several assets on January 1 at a total cash price of $850,000. The estimated market values of the purchased assets are building, $458, 150; land, $317,900; land improvements, $ 65,450; and four vehicles, $93,500. Required: 1-a. Allocate the lump - sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $30,000 salvage value. 3. Compute the first -year depreciation expense on the land improvements assuming a five-year life and double-declining - balance depreciation.Complete this question by entering your answers in the tabs below.Malik Edson has the following assets: • Land with ACB of $60,000 Building with a cost of $105,000, and UCC of $79,000. Malik sells both of land and building in a single transaction for $219,000. The estimated FMV of each was: • Land: $146,000 • Building: $73,000 How much capital gain and terminal loss will Malik realize on this transaction? Choose the correct answer. A. capital gain of $73,000, terminal loss of $32,000 B. capital gain of $73,000, terminal loss of $6,000 C. capital gain of $54,000, terminal loss of $0 D. capital gain of $80,000, terminal loss of $0
