!Required informationPayNet Inc. (PayNet) and Shale Ltd. (Shale) had the following balance sheets on July 31, 2022:CashAccounts receivableInventoryPlant and equipment (net)GoodwillTrademarkTotal assetsCurrent liabilitiesBonds payableCommon sharesRetained earningsTotal liabilities and equityPayNet Inc(carrying value)$280.000100,00060,000200,000$640,000$120,000330,00090,000100,000$640,000Shale Ltd.(carrying value)$36.000Shale Ltd.(fair value)$36,00045,00020,00075,00040,00024,00080,0008,00012,000 24,000$200,000$50,00020,00080,00050,000$200,00050,00030,000Assuming that PayNet acquires 70% of Shale on August 1, 2022, for cash of $196,000, what is the amount of goodwill on PayNet's consolidated balance sheet at thedate of acquisition if the fair value enterprise (FVE) method was used? Multiple ChoiceNil$88,000$160,000$112,000

Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Required information PayNet Inc. (PayNet) and Shale Ltd. (Shale) had the following balance sheets on July 31, 2022: Cash Accounts receivable Inventory Plant and equipment (net) Goodwill Trademark Total assets Current liabilities Bonds payable Common shares Retained earnings Total liabilities and equity PayNet Inc (carrying value) $280,000 100,000 60,000 200,000 $640,000 $120,000 330,000 90,000 100,000 $640,000 Shale Ltd. (carrying value) $36,000 40,000 24,000 80,000 8,000 12,000 Shale Ltd. (fair value) $36,000 45,000 20,000 75,000 24,000 $200,000 $50,000 50,000 20.000 30,000 80,000 50,000 $200,000 suming that PayNet acquires 70% of Shale on August 1, 2022, for cash of $196,000, what is the amount of goodwill on PayNet's consolidated balance sheet at t te of acquisition if the fair value enterprise (FVE) method was used?

Required information PayNet Inc. (PayNet) and Shale Ltd. (Shale) had the following balance sheets on July 31, 2022: Cash Accounts receivable Inventory Plant and equipment (net) Goodwill Trademark Total assets Current liabilities Bonds payable Common shares Retained earnings Total liabilities and equity PayNet Inc (carrying value) $280,000 100,000 60,000 200,000 $640,000 $120,000 330,000 90,000 100,000 $640,000 Shale Ltd. (carrying value) $36,000 40,000 24,000 80,000 8,000 12,000 Shale Ltd. (fair value) $36,000 45,000 20,000 75,000 24,000 $200,000 $50,000 50,000 20.000 30,000 80,000 50,000 $200,000 suming that PayNet acquires 70% of Shale on August 1, 2022, for cash of $196,000, what is the amount of goodwill on PayNet's consolidated balance sheet at t te of acquisition if the fair value enterprise (FVE) method was used?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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