Find out the value of goodwill Tyson & Co. values its goodwill at threeyears' purchase of the last four years'average profit. The recorded profits for thelast four years were R.O 50,000, R.O28,000, R.O 18,000, and R.O 14,000,respectively.Find out the value of goodwill.

Explanation of Goodwill:Goodwill is an intangible asset that represents the excess value of a…

Answered: Tyson & Co. values its goodwill at…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

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Financial accounting
Calculate the amount of goodwill?
Accounting question
The profits of firm for the five years are as follows: Year Profit (Rs.) 2012-13 20,000 2013-14 24,000 2014-15 30.000 2015-16 25.000 2016–17 8,000 Calculate the value of goodwill on the basis of three years' purchase of weighted average profits based on weights 1,2,3,4 and 5 respectively.
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Answer the following:
Calculate the goodwill of the firm
Southern inc. purchases an asset for 98,000. Thus asset qualifies as a 3 year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1= 33.33% year 2: 44.45% year 3= 14.81% and year 4 = 7.41%. Southern has a tax date of 25%. If the asset is sold at the end of 2 years for 29,000 what is the cash flow disposal ? 17,404 11,129 13,923 21,755 27,194
Churchill Ltd. purchases an asset for $150,000. This asset qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%. Churchill has a tax rate of 30%. If the asset is sold at the end of four years for $40,000, what is the cash flow from disposal?
During the past two years, through extensive advertising and improved customer relations, jEAN Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange may amortize. a.$26,667 b.$-0- c.$16,667 d.$33,333
Northern Inc. purchases an asset for $150,000. This asset qualifies as a five−year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%. The firm has a tax rate of 20%. If the asset is sold at the end of four years for $40,000, what is the cash flow from disposal?
Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. A. What is the amount of goodwill in this transaction? B. What is Buchanans journal entry to record the purchase of McLaren? C. What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?

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Tyson & Co. values its goodwill at three years' purchase of the last four years' average profit. The recorded profits for the last four years were R.O 50,000, R.O 28,000, R.O 18,000, and R.O 14,000, respectively. Find out the value of goodwill.