Homework Help is Here – Start Your Trial Now!
Business
Accounting
Record Corporation CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below Record, Corp Balance Sheet Acquisition Date Assets Cash Accounts Receivable Inventory Depreciable Assets less Accumulated Depreciation Note Receivable Goodwill Total Assets Liabilities and Equities Accounts Payable Note Payable Deferred Income Tax Liability Shareholders' Equity Total Liabilities and Equities Historical Cost $479,000 225,400 98,900 554,700 100,000 $1,450,000 $458.000 325,000 125,000 550,000 $1,458,000 Current Market Value $489,000 220,000 105,000 600,000 100,000 $450,000 325,000 125,000

Record Corporation CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below Record, Corp Balance Sheet Acquisition Date Assets Cash Accounts Receivable Inventory Depreciable Assets less Accumulated Depreciation Note Receivable Goodwill Total Assets Liabilities and Equities Accounts Payable Note Payable Deferred Income Tax Liability Shareholders' Equity Total Liabilities and Equities Historical Cost $479,000 225,400 98,900 554,700 100,000 $1,450,000 $458.000 325,000 125,000 550,000 $1,458,000 Current Market Value $489,000 220,000 105,000 600,000 100,000 $450,000 325,000 125,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not provide answer in image formate, thank you.

Record Corporation CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below: Record, Corp. Balance Sheet Acquisition Date Assets Cash Accounts Receivable Inventory Depreciable Assets less Accumulated Depreciation Note Receivable Goodwill Total Assets Liabilities and Equities Accounts Payable Note Payable Deferred Income Tax Liability Shareholders' Equity Total Liabilities and Equities Historical Cost $479,000 225,400 98,900 554,700 100,000 $1,450,000 $458,000 325,000 125,000 550,000 $1,450,000 Current Market Value $489,000 220,000 105,000 600,000 100,000 $450,000 325,000 125,000
Transcribed Image Text:Record Corporation CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below: Record, Corp. Balance Sheet Acquisition Date Assets Cash Accounts Receivable Inventory Depreciable Assets less Accumulated Depreciation Note Receivable Goodwill Total Assets Liabilities and Equities Accounts Payable Note Payable Deferred Income Tax Liability Shareholders' Equity Total Liabilities and Equities Historical Cost $479,000 225,400 98,900 554,700 100,000 $1,450,000 $458,000 325,000 125,000 550,000 $1,450,000 Current Market Value $489,000 220,000 105,000 600,000 100,000 $450,000 325,000 125,000
QUESTION 10 Based on the information concerning Record Corp., what amount of goodwill should CD record at the acquisition date? Oa ($294,000) Ob.$624,000 Oc$1,000,000 d.5594,000
Transcribed Image Text:QUESTION 10 Based on the information concerning Record Corp., what amount of goodwill should CD record at the acquisition date? Oa ($294,000) Ob.$624,000 Oc$1,000,000 d.5594,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
S Corporations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS