On June 4, 2023, Tricon Corporation, a calendar - year corporation, purchased and began operating the Bandst Restaurant. Of the total purchase price to acquire the Bandst Restaurant, $46,744 is allocated to goodwill. How much, if any, of the $46,744 purchase price of the business that was allocated to goodwill will be deductible by Tricon Corporation in 2023?
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![On June 4, 2023, Tricon Corporation, a calendar - year corporation, purchased and began operating the Bandst Restaurant. Of the total purchase price to acquire the Bandst Restaurant, $46,744 is
allocated to goodwill. How much, if any, of the $46,744 purchase price of the business that was allocated to goodwill will be deductible by Tricon Corporation in 2023?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81fafe1a-b0c3-42e8-845c-4bf03e322fa9%2Fd68281ad-ad43-42ab-8036-4ae6f4c8341f%2Fdxj7rth_processed.png&w=3840&q=75)
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- On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roque more Corporation for $910,000 and $405,000, respectively. On the date of the sale, the book value of the patent was $ $200,000, and the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000) Prepare the journal entries to record the sales of the patent and equipment < 1 2 Record the sale of the equipment for $405,000. On the date of the sale, the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000). Note: Enter debits before credits. Event 2 General Journal Debit CreditOn March 20, 2020, FineTouch Corporation purchased two machines at auction for a combined total cost of $214,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, FineTouch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $107,100 on machine X and $130,900 on machine Y.On March 24, FineTouch paid a total of $4,800 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $5,600 was paid on March 29 for improvements to machine Y. On March 31, 2020, both machines were ready to be used.The company expects machine X to last five years and to have a residual value of $3,600 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $14,580 at that time. Due to the different characteristics of the two machines,…Prepare a schedule showing all expenses resulting from the transactions that would appear on Concord's income statement for the year ended December 31, 2025. CONCORD CORPORATION Expenses Resulting from Selected Intangible Assets Transactions $
- Information concerning Blue Corporation's intangible assets is as follows. On January 1, 2025, Blue signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $100,000. Of this amount, $20,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $20,000 each, beginning January 1, 2026. The agreement provides that the down payment is not refundable and no future services are required f the franchisor. The present value at January 1, 2025, of the 4 annual payments discounted at 15% (the implicit rate for a loan of this type) is $57,100. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Blue's revenue from the franchise for 2025 was $870,000. Blue estimates the useful life of the franchise to be 10 years. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the franchise fee and payments.) Blue incurred…On January 1, 2020, Faye Company purchased Che Company at a cost that resulted in recognition of goodwill of 2,000,000. During the first quarter of 2020, Faye Company spent an additional 800,000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2020, Faye Company estimated that the benefit period of goodwill was indefinite. In the December 31, 2020 how much is recorded as outright expense? 1,800,000 800,000 2,000,000 1,900,000Pearl Limited purchased an asset at a cost of $20,000 on March 1, 2023. The asset has a useful life of seven years and an estimated residual value of $2,200. For tax purposes, the asset belongs in CCA Class 8, with a rate of 20%. (a) Calculate the CCA for each year, 2023 to 2026, assuming Pearl's asset is eligible for the Accelerated Investment Incentive, and that this is the only asset in Class 8. 2023 2024 2025 2026 2024 2025 CCA 2026 $ TA (b) How would the calculation for each year from 2024 to 2026 change if the asset had been purchased in 2024? $ $ $ tA tA $ CCA
- On July 1, 2024, Apache Company, a real estate developer, sold a parcel of land to a construction company for $4,128,000. The book value of the land on Apache’s books was $1,720,000. Terms of the sale required a down payment of $172,000 and 23 annual payments of $172,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2025. How much revenue will Apache recognize for the sale (ignoring interest), assuming that it recognizes revenue at the point in time at which it transfers the land to the construction company?On March 1, 2025, Wildhorse Co. acquired real estate, on which it planned to construct a small office building, by paying $80,000 in cash. An old warehouse on the property was demolished at a cost of $8,200; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,200 attorney's fee for work concerning the land purchase, $4,500 real estate broker's fee, $8,700 architect's fee, and $14,000 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of the land $1. On November 4, 2020, GT Corporation sells a piece of its equipment. GT Corporation had initially purchased the equipment for $350,000. The company had recorded $230,000 in depreciation for this piece of equipment as of the date of sale. If GT Corporation receive $150,000 cash when they sell the equipment, they will report a November 2020 Income Statement; if they instead receive $100,000 cash when they sell the equipment, they will on their report a a. $150,000 gain; $100,000 gain. b. $80,000 gain; $130,000 loss. c. $30,000 loss; $20,000 gain. d. $30,000 gain; $20,000 loss.
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