Find out the value of Goodwill Tyson & Co. values its goodwill at threeyears' purchase of the last four years'average profit. The recorded profits forthe last 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.

Concept of GoodwillGoodwill is an intangible asset that represents the reputation, brand value,…

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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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?
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
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
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An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using declining-balance method. a. After one year b. After two years c. After six years a. The book value after one year is $ . (Round to the nearest dollar as needed.)

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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.