Tesla acquired Amazon, for $33,520,000. The fair value of all Amazon's identifiable tangible and intangible assets was $30,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition? Multiple Choice $880,000 $1,760,000 $0 $3,520,000

Tesla acquired Amazon, for $33,520,000. The fair value of all Amazon's identifiable tangible and intangible assets was $30,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition? Multiple Choice $880,000 $1,760,000 $0 $3,520,000

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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4 Bella Inc. has invested in a piece of land on January 1, 2022. The company uses the revaluation model for its land, and the revaluation takes place annually. 5 6 7 More information about the land acquisition cost and fair values is provided below: 8 January 1, 2022 Acquisition cost 519000 paid for in cash 9 December 31, 2022 Fair value 532000 10 December 31, 2023 Fair value 535000 Fair value 529000 11 December 31, 2024 12 13 During June 2025, the company sold the land for 14 0 1 2 3 15 Required 16 Prepare all journal entries related to the land from January 1, 2022 to June 2025, assuming the asset adjustment method is used. 17 18 Enter your answer here: 9 534000 45
Firm A acquires firm B when firm B has a book value of assets of $315 million and a book value of liabilities of $115 million. Firm A actually pays $335 million for firm B. This purchase would result in goodwill for firm A equal to. Multiple Choice $335 million O $315 million $200 million $135 million
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ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows: ProForm ClipRite Sales $ (800,000 ) $ (600,000 ) Cost of goods sold 535,000 400,000 Operating expenses 100,000 100,000 Dividend income (35,000 ) 0 Net income $ (200,000 ) $ (100,000 ) Retained earnings, 1/1/21 $ (1,300,000 ) $ (850,000 ) Net income (200,000 ) (100,000 ) Dividends declared 100,000 50,000 Retained earnings, 12/31/21 $ (1,400,000 ) $ (900,000 ) Cash and receivables $ 400,000 $ 300,000 Inventory 290,000 700,000 Investment in ClipRite 910,000 0…
The noncontrolling interest is what I am needing, the answer is not 415,500 and it's not 418,320. Thank you
ProForm acquired 60 percent of ClipRite on June 30, 2023, for $600,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded Intangible of $400,000 was recognized and is being amortized at the rate of $11,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $400,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals ProForm $ (810,000) 540,000 110,000 (36,000) $ (196,000) $ (1,000,000) (196,000) 110,000 $ (1,086,000) $ 410,000 300,000 600,000 1,100,000 (500,000) $ 1,910,000 $ (624,000) (200,000) (1,086,000) $ (1,910,000) ClipRite $ (620,000) 405,000 105,000 $ (110,000) $…
Easter Company’s 12/31/2021 statement of financial position reports assets of $5,000,000 and liabilities of $2,000,000. All of Easter’s assets’ book values approximate their fair value, except for land, which has a fair value that is $300,000 greater than its book value. On 12/31/2021, Wendell Corporation paid $5,100,000 to acquire Easter. Calculate the amount of goodwill Wendell should record as a result of this purchase.
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Assume that ABC, Inc, acquires a competitor's assets on June 10, 2020. The purchase price was $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is allocated to goodwill (a §197 intangible asset). What is ABC, Inc. amortization deduction for 2020? (Round final answer to the nearest whole number.) a) $25,000. b) $1,667. c) $972. d) $833. e) None of the above.
At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $590 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $ 149 million Patent 39 million Goodwill 120 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a five-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2024, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined: Plant and equipment: Undiscounted sum of future cash flows $ 79 million Fair value 59 million Patent: Undiscounted sum of future cash flows $ 20 million Fair value 13 million Goodwill: Fair value of Ellison Technology Corporation $…