Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.28E
| Medifast | Book Value | Fair Value |
| Cash | $ 36,000 | $ 36,000 |
| Receivables | 100,437 | 100,400 |
| Manufacturing equipment | 640,275 | 654,234 |
| Patents (remaining life 10 years) | 60,000 | 854,000 |
| Trademarks | 14,652 | 187,450 |
| Payables | 58,902 | 58,902 |
Required
- a. What is the amount of goodwill acquired?
- b. What intangible assets are acquired? Which of the intangibles have an indefinite life? Which will be amortized? What will the amortization expense be in the year after acquisition?
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Core Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Core purchased goodwill as part of the acquisition of Surety Wireless Company, which had the following figures:
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Identifiable Intangibles and Goodwill
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Chapter 11 Solutions
Intermediate Accounting
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