Chapter 1, Problem 40DQ

Please provide the correct answer to this general accounting problem using accurate calculations.

If the liabilities of redwood enterprises increase $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period,

I am looking for the correct answer to this financial accounting problem using valid accounting standards.

On January 1, 2021, Nova Logic Inc. purchased a device for $18,000. The device was estimated to have an 8-year useful life and a residual value of $1,200. Straight-line depreciation is used. On January 1, 2023, the device was exchanged for office furniture with a fair value of $16,700. Assuming the exchange had commercial substance, how much would be recorded as a gain on disposal?

Franklin Corp. has 25 million shares outstanding and trades at $38 per share. Franklin has net identifiable assets with a book value of $800 million and a fair value of $950 million. Riverdale Investments purchases all of Franklin Corp.'s stock for $48 per share. How much will Riverdale Investments record as goodwill upon acquiring Franklin Corp.?

Can you explain the process for solving this financial accounting question accurately?

Provide correct solution and accounting

Can you solve this general accounting problem with appropriate steps and explanations?

General Accounting please solve this problem