Accounting mini corp. Acquires a patent from maxi co Mini Corp. acquires a patent from Maxi Co. in exchange for 2,500 shares ofMini Corp.'s $5 par value common stock and $75,000 cash. When the patentwas initially issued to Maxi Co., Mini Corp.'s stock was selling at $7.50 pershare. When Mini Corp. acquired the patent, its stock was selling for $9 ashare. Mini Corp. should record the patent at what amount?a. $87,500b. $93,750c. $97,500d. $75,000

Detailed explanation:Acquisition Price of Patent : Cash Paid…

Answered: Mini Corp. acquires a patent from Maxi…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

See similar textbooks

Similar questions

Accounting need help
I
On June 30, 2021, Crane, Inc. exchanged 5900 shares of Cullumber Corp. $30 par value common stock for a patent owned by IvanhoeCo. The Cullumber stock was acquired in 2021 at a cost of $164000. At the exchange date, Cullumber common stock had a fair value of $47 per share, and the patent had a net carrying value of $309000 on Ivanhoe's books. Crane should record the patent at
Solve this question Accounting
please print the journal entries
Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $20 per share and the building’s book value on the books of the seller was $211,000.Which of the following journal entries is correct for Smith Company when Smith issues 11,100 shares of $10 par value common stock and pays $21,100 cash in exchange for the building? Please see picture attached.
Gusion Company purchases 9,000 shares of Layla Company for P70 per share. Before acquisition, Layla Company has the following balance sheet: On the date of acquisition, Gusion believes that the inventory has a fair value of P400,000 and that the property and equipment is worth P500,000. All other assets and liabilities fair value is equal to their carrying amount. The cost of disposal of the noncurrent asset held for sale is P5,000. Layla’a shares was selling ex-dividend. The goodwill/gain on bargain purchase in the consolidated statement is: A. (P40,000) B. P30,000 C. P185,000 D. (P35,000)
Determine the cost of the patent??
Eure Co. acquired a machine in exchange for 10,000 of its own shares with par value of 10. Per share and fair value of 130 per share. Case 1: the cash selling price of the machine is 1,400,000. Provide the journal entry. Case 2: the cash selling price of the machine is not determinable. Provide the journal entry.
On 8 August 20X3, Alpha Ltd (Alpha) acquired 20 000 shares in Beta Ltd (Beta) that gave Alpha control over Beta in return for 10 000 of its own shares. At that date, Alpha’s shares had a market value of $2.70 each, while Beta’s shares had a market value of $1.30 each. Fees paid to legal advisers for the transaction totalled $2000. What is the fair value of the consideration transferred? a. $29 000 b. $26 000 c. $28 000 d. $27 000
Desert Company purchased land by exchanging 25,000 shares of the company's common stock that had a $10 par value. The land was recently appraised for $250,000. Desert's stock is not actively traded on the NYSE but last year a shareholder sold a block of 250 shares at a selling price of $20 per share. What is the original cost of the Land that will be recorded by Desert, Co., on their Balance Sheet?
Meck Company is considering the acquisition of another entity. The following data relate to the acquiree: Shareholders' equity 5,000,000 Earnings for prior three years 1,500,000 The acquiree has a valuable patent which is not recorded. If the entity is sold, the patent would be transferred to the buyer for P500,000. Other assets are properly appraised. The patent has a remaining life of 5 years. The earnings of the entity are expected to increase 10% more than the average earnings of the past three years before taking into consideration the amortization of the patent cost. Compute for the goodwill under the following methods: 1. Average future earnings are capitalized at 8% 2. goodwill is measured at the average excess earnings capitalized at 10% with normal rate at 8%. 3. Goodwill is measured at the present value of the average excess earnings discounted at 10% for four years with normal rate of 8%. The present value of an ordinary annuity of 1 for 4 years at 10% is 3.17.

SEE MORE QUESTIONS

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS