Chapter 4, Problem 1CCTC

D.  Star Company purchases Stripe Inc. for $13,985,000 cash on January 1, 2024.  The book value of Stripe Inc. net assets reported on its December 31, 2023 statement of financial position was $12,620,000. Star’s December 31, 2023 analysis indicated that the fair value of Stripe’s tangible assets exceeded the book value by $560,000, and the fair value of identifiable intangible assets exceeded book value by $245,000. How much goodwill should be recognized by Star Company when recording the purchase of Stripe Inc.?  $   E.   Benz Co. incurred research and development costs in 2024 as follows: Materials used in research and development projects $    450,000 Equipment acquired that will have alternate future uses in future research and development projects 3,000,000 Depreciation for 2024 on above equipment 300,000 Personnel costs of persons involved in research and development projects 750,000 Consulting fees paid to outsiders for research and development…

Set the answers to zero decimal places.

On January 1, 2020, Floss Company purchased a copyright for $1,000,000, having an estimated useful life of 16 years. In January 2024, Floss Company paid $150,000 for legal fees in a successful defense of the copyright. What should be the amount of copyright amortization expense for the year ended December 31, 2024?  $

Star Company purchases Stripe Inc. for $13,985,000 cash on January 1, 2024.  The book value of Stripe Inc. net assets reported on its December 31, 2023 statement of financial position was $12,620,000. Star’s December 31, 2023 analysis indicated that the fair value of Stripe’s tangible assets exceeded the book value by $560,000, and the fair value of identifiable intangible assets exceeded book value by $245,000. How much goodwill should be recognized by Star Company when recording the purchase of Stripe Inc.?  $

A. On September 22, 2023, Phantom Inc. purchased machinery for $190,000. Residual value was estimated to be $10,000. The machinery will be depreciated over eight years using the sum-of-the-years’-digits method. If depreciation is computed on the basis of the nearest full month, how much depreciation expense for 2024 on this machinery should Marvel record?  $

On October 5, LASCO Traders sold goods worth $170,000 to Retailers Plus.   LASCO uses the net method to record sales. Terms:  3/15, EOM   On October 16, LASCO received payment by cheque from Retailers Plus for $70,000 worth of goods that were sold on October 5.   On October 31, Retailers Plus issued a 60-day 5% note to LASCO Traders for the outstanding balance from the October 5 sales.

Palouse Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries and wages earned by employees $ 217,000 Employee income taxes withheld 43,400 Employee government insurance premiums withheld 4,000 FICA payroll taxes* 15,300 *Assessed on both employer and employee (i.e., $15,300 each). Required: Prepare the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Palouse has yet to transfer any withholdings to the government. Prepare the journal entry to record the employer's payroll taxes, which have not yet been paid to the government. Provide a combined journal entry to show the payment of all amounts owed to governmental agencies.Answer the question:Journal 1. Record the payroll for March, including employee deductions.Journal 2. Record the employer's payroll taxes.Journal 3. Record the entry to show the payment of amounts owed to governmental…

Benz Co. incurred research and development costs in 2024 as follows: Materials used in research and development projects Equipment acquired that will have alternate future uses in future research and development projects Depreciation for 2024 on above equipment $ 450,000 3,000,000 300,000 750,000 Personnel costs of persons involved in research and development projects Consulting fees paid to outsiders for research and development projects 300,000 Indirect costs reasonably allocable to research and development projects 225,000 Total $5,025,000 Assume economic viability has not been achieved. What amount of research and development costs should be charged to Benz's 2024 income statement? $

Journal 1. Record the payroll for March, including employee deductions.Journal 2. Record the employer's payroll taxes.Journal 3. Record the entry to show the payment of amounts owed to governmental agencies.