Chapter 10, Problem P10.40BPGB

To determine

Intangible Assets:

The asset which cannot be seen or touched, with a useful life over a year is called intangible assets.

Goodwill:

The excess acquisition cost paid over the market value of net assets of the acquired company is called Goodwill.

To determine:

1. The journal entry to record Core’s purchase of Surely Wireless for $280,000 cash plus a $420,000 note payable.

2. Identify the special assets from the Core’s acquisition of Surely Wireless. How should Core Telecom account for this asset after acquiring Surely Wireless?