Lake Incorporated purchased all of the stock of Huron Company, paying $950,000 cash. Lake also assumed all of the liabilities of Huron. Book values and fair values of the acquired assets and liabilities were:                                                           Book value     Fair value Current assets (net)                         $130,000      $125,000 Property, plant & equipment (net) 600,000          750,000 Liabilities                                      150,000             175,000 Required:What amount of Goodwill should Lake Inc. record in connection with this purchase?

Q: Marty's Mart paid $270,000 to acquire Turbo Gas, a corner store and gas station. At the time of the…

A: Step 1:Requirement 1     ParticularsAmount($)Amount($)Explanation Purchase price to acquire Turbo…

Q: On December 31 , 2010, Scotch Company decided and classified a group of its assets as held for sale…

A: According to International accounting standard-36 (impairment of assets), it states that the…

Q: During the current year, the Great Drake Company acquired a manufacturing facility at a total…

A: To record transactions and maintain track of business activities, the business entities enter the…

Q: Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume…

A: The business combination is described as when one entity controls the other entity through the…

Q: has acquired several other companies. Assume that Princess purchased Kittery for $7,000,000 cash.…

A: Goodwill = Cash paid - Net asset At acquisition of company, Goodwill is the amount which is paid in…

Q: K First Company purchased Second Company for $20,000,000 cash. At the time of purchase, Second…

A: GoodwillGoodwill is recognized as an intangible asset in the financial statements. Goodwill…

Q: Rock Bridge Corporation bought the entire Solar Energy Corporation for $1,200,000 Cash. The fair…

A: Consolidation As per the consolidation rule when parents gets full/partial control over the…

Q: Chili's, acquired Thallicious for $32,170,000. The fair value of all Thailicioustangible and…

A: Goodwill is the excess of consideration paid over the fair values of net assets of the acquiring…

Q: 21. Coldspring Company purchased Freshwater Company's net assets and assigned them to tw separate…

A: The excess of a company's purchase price over the fair value of the identifiable intangible as well…

Q: Princess has acquired several other companies. Assume that Princess purchased Krandell for…

A: Answer 1:

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: Princess has acquired several other companies. Assume that Princess purchased Kittery for $6,000,000…

A: Computation of goodwill as follows under:-The following formula used=Purchase price value - Net…

Q: 1.compute the amount of goodwill acquired 2.Record the acquisition in a financial statements model.…

A: Goodwill :- Goodwill means reputation, image, credit, value & Demand of the Company in the…

Q: 1. Prepare any necessary journal entries associated with the three classes of assets for the year…

A: Hey there since you have posted multiple questions, we can answer only first question,  please…

Q: arizona corp. acquired the business data systems for $320,000 cash and assumed all liabilites at the…

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: Parma Ltd purchased a parcel of assets and liabilities comprising a business directly from Pauls Pty…

A: Journal entries to record the acquisition by Parma Ltd is as under:

Q: 1, a public corporation exchanged an asset with Bass Industries. The following information was…

A: In case of exchange of asset, if such exchange has a commercial substance then the asset has to be…

Q: MC48 On July 16, 2019, Rudy Project Company purchased all the ase cash. Iris Company's total…

A: Goodwill: Generally speaking, goodwill is an intangible asset that is related with the acquisition…

Q: What should be reported as the carrying amount of the disposal group in the entity's accounts after…

A: Option (C) P1,700,000 is correct.

Q: In 2022, Alliant Corporation acquired Centerpoint Incorporated for $339 million, of which $59…

A: Goodwill is the brand name of the entity. Goodwill helps an entity to earn more than its…

Q: Java Dreams shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is…

A: Goodwill = Amount paid for purchase of business - (Fair value of assets - Book value of liabilities)…

Q: Rangs Ltd acquired a business for the following consideration: Cash $150,000 Land—Carrying amount…

A: Goodwill is an intangible asset linked to the acquisition of a business by another. Goodwill is…

Q: Sheffield Inc. purchased Manzanita Marine on June 1, 2018 for $24992000 and recorded goodwill of…

A: The amount of loss on impairment of goodwill is calculated as shown below.

Q: #1 Jones Co. in a lump-sum purchase, bank note for $2,000,000 and used cas COS ASSET Land $300,…

A: Under lumpsum sale, all the assets and liabilities are transferred for one single consideration…

Q: Laker Grind Coffee House, Inc. purchased Brian's Bakery, Inc. for $400,000. The fair market value of…

A: Calculation of total assetsBuilding $200,000Equipment $150,000Furniture $50,000Inventory…

Q: Geet Marketing is acquiring Tusk Co. for $565,000 in cash. Tusk has fixed assets with a book value…

A: Goodwill is the difference of amount paid for acquiring the company and the net assets acquired.

Q: Tea Tree Bay Ltd acquires a Gizmo Machine from Jetsons Ltd for the following consideration: Cash…

A:

Q: Determine whether there is any goodwill impairment and if so please calculate the goodwill…

A: When the book value or previously recorded value of the goodwill of any entity is lower than the…

Q: Concord Corporation purchased the assets of Ivanhoe Company at an auction for $5640000. An…

A: Total of Relative fair values Land $1830000 Building 2910000 Equipment 2250000 Trucks…

Q: COMPUTE THE GOODWILL.

A: Step 1 Since as per given case, the acquirer has acquired all assets and liabilities or acquired…

Q: On October 20, 2018, Toffeenut Project Company purchased all the assets and assumed all the…

A: Goodwill is an intangible asset that is recognized during the process of a company buying another…

Q: New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $68,000 in cash.…

A: Lets understand the basics.When business is acquired at more than the fair value of net asset then…

Q: The goodwill of DD was due to the acquisition of P on December 1, 2022. The carrying amount and fair…

A: Goodwill refers to the value of reputation of an entity.

Q: Goodman Company exchanges an asset with The Pryce Corporation. Details of the exchange are as…

A: In case of barter which has commercial substance, PPE has to be recorded at fair value of the asset…

Q: 6. Interest charges of $2000 Requirement: required: A. Which of the above payments must be…

A: The cost of the asset includes all those cost which makes the asset relevant for it's intended use.…