Urgent Please!Cascade Ltd. acquired 100% of the voting shares of Tumble Inc. on December 31, 2023. At that time, Tumble had a client list with a fair value of $140,000 greater than the carrying value. The estimated useful life was 7 years. Which adjustments must be made in the December 31, 2025, consolidated statements in relation to the FVD of the client list? Question 1 options: A) Consolidated SI: increase depreciation expense by $20,000 and Consolidated SFP: increase the client list by $100,000 B) Consolidated Sl: decrease depreciation expense by $20,000 and Consolidated SFP: increase the client list by $100,000 C) Consolidated Sl: decrease depreciation expense by $20,000 and Consolidated SFP: increase the client list by $80,000 D) Consolidated Sl: increase depreciation expense by $20,000 and Consolidated SFP: increase the client list by $80,000

Urgent Please!Cascade Ltd. acquired 100% of the voting shares of Tumble Inc. on December 31, 2023. At that time, Tumble had a client list with a fair value of $140,000 greater than the carrying value. The estimated useful life was 7 years. Which adjustments must be made in the December 31, 2025, consolidated statements in relation to the FVD of the client list? Question 1 options: A) Consolidated SI: increase depreciation expense by $20,000 and Consolidated SFP: increase the client list by $100,000 B) Consolidated Sl: decrease depreciation expense by $20,000 and Consolidated SFP: increase the client list by $100,000 C) Consolidated Sl: decrease depreciation expense by $20,000 and Consolidated SFP: increase the client list by $80,000 D) Consolidated Sl: increase depreciation expense by $20,000 and Consolidated SFP: increase the client list by $80,000

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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