Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The following assets and liabilities were purchased:Book Value Fair MarketValueAccounts receivables $ 140,000 $ 140,000 Inventory 168,000 256,000 Property, plant, and equipment (net) 820,000 1,040,000 Patent 0 276,000 Liabilities (170,000 ) (170,000 )________________________________________ Required:1. What is the appropriate amount that would be recorded for goodwill?         2. Prepare the journal entry for the acquisition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Q: Dorel Company is being purchased and has the following balance sheet as of the purchase date: $…

A: Net assets of Dorel = Current assets + Fair value of fixed assets - fair value of current…

Q: At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the…

A: Depreciation can be termed as a reduction in the value of an asset over its useful period when used…

Q: On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase…

A: Amortization of intangible assets:  Allocation of the cost of intangible assets over its service or…

Q: On January 1, 2018, ICT Company purchased 80% of ESP Company's stock for P975,000. On this date, the…

A: On date of acquisition the net assets of subsidiary are to be measured at fair value.  NCI on…

Q: At the beginning of 2016, Metatec Inc. acquired Ellison Technology Corporation for $600 million. In…

A:

Q: Dorel Company is being purchased and has the following balance sheet as of the purchase date:…

A: Net assets of Dorel = Current assets + Fair value of fixed assets - fair value of current…

Q: Lake Incorporated purchased all of the outstanding stock of Huron Company, paying $850,000 cash.…

A: Fair value of net assets= Fair value of current asset + Fair value of property, plant and equipment…

Q: Quail Company purchases 80% of the common stock of Commo Company for $800,000. At the time of the…

A: 1. a.

Q: Fortitude Company purchased an entity for P6,000,000 cash on January 31. The book value and fair…

A: Goodwill is an intangible asset for the firm which can be arise only at the time of purchase of the…

Q: Woolco, Inc., purchased all the outstanding stock of Paint, Inc., for $980,000. Woolco also paid…

A: 1. Prepare the journal entry to record the purchase of the Paint Inc., and the payment made for the…

Q: MNC Corporation purchased all of the outstanding stock of Caldwell Inc., paying $2,700,000 cash.…

A: When the net assets acquired are less than the amount paid for it then the difference is treated as…

Q: P Company acquired 90% of S Corporation on January 1, 2011, for $2,250,000. S Inc. had net assets at…

A: A stock exchange allows anybody to purchase and sell securities in order to grow their (financial)…

Q: ABC Company acquired all of XYZ Corporation's assets and liabilities on June 30, 20X1. XYZ reported…

A: An asset is an expense that will be helpful in future accounting periods. If an expenditure does not…

Q: The assets and liabilities of ABC were summarized as follows: Cash P66,000; Inventories P198,000;…

A: A business combination occurs when an entity acquires control over an organization. Asset purchases…

Q: Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the…

A: Consolidation- The consolidated financial statement, which represents the financial status of both a…

Q: Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per…

A: a. Prepare the journal entry will be passed to reflect the transfers:

Q: On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded…

A: Goodwill means the reputation of the company due to any factor like location , product , price ,…

Q: During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc.…

A: Solution: Under the Acquisition method, majority cases of the Buyer or Purchaser are recorded the…

Q: Arizona Corp. acquired the business Data Systems for $320,000 cash and assumed all liabilities at…

A: a. Calculate the goodwill for Arizona Corporation.

Q: ABC Company acquired all of XYZ Corporation's assets and liabilities on June 30, 20X1. XYZ reported…

A: Net Assets: Net assets are what a company owns wholly less what anyone owes. In other terms, net…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition means total expenses incurred by entity to purchase other entity or assets.

Q: Sage, Inc. bought 40% of Adams Corp.'s outstanding common stock on January 2, 20x3 for P400,000. The…

A: Given the following information: Sage, Inc. bought 40% of Adams Corp.'s outstanding common stock on…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Fair value of net identifiable assets =  P133,000 + P900,000 - P10,000  = P1,023,000

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition is a concept that includes all the costs at the time of purchase. It is net…

Q: ABC Corporation purchased a business for P20,000,000 cash. The assets and liabilities of the…

A: Goodwill means the reputation of the company due to any factor like location , product , price ,…

Q: Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The…

A: The goodwill is the amount paid for the good image of the acquired business. The amount of goodwill…

Q: Prince Corporation acquired 1O0 percent of Sword Company on January 1, 20X7, for $178,000. The trial…

A: Investment in Another Company: It is possible for a firm to invest in another company via the use of…

Q: Libra Company is purchasing 100% of the  outstanding stock of Genall Company for $700,000. Genall…

A: Part a) value analysis Particular Company implied fair value Parent price (100%) Company…

Q: 1. On July 1, 2010, Jablonski Products purchased the net assets of Duquesne Industries for $285,000…

A: It is pertinent to note that if the purchase consideration is more than the value of net assets…

Q: On January 1, 20X1, XYZ, Inc. purchased 70% of Set Corporation for $469,000. On that date the book…

A: Income from subsidiary in net income: Purchased 70 % of set corporation. Net income of $ 100000

Q: AB Inc, acquired 100% stake in CD Inc. on January 1, 2013. AB paid $564,000 cash for the…

A: Goodwill is the excess value paid by the acquirer over the fair value of net assets to acquire the…

Q: ABC Company acquired all of XYZ Corporation's assets and liabilities on June 30, 20X1. XYZ reported…

A: Book value and fair value The book value is based on the old old purchase price, from which yearly…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition is the total cost incurred (including transaction cost) by a company to overtake…

Q: New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $72,800 in cash.…

A: Calculation of fair value of net identifiable assets :                            Current assets =…

Q: P Company wishes to acquire S Co. for cash in an asset acquisition, and appraisals reveal that the…

A: The acquisition method is a method where the acquirer company takeover the assets and liabilities of…

Q: On Jan 1, 20X1, Ouyang Inc paid $1,000,000 to acquire 70% of Huang Inc when Huang's BV was $500,000.…

A: Intangible assets are the assets owed by firm which can’t be seen and touched. It includes patent,…

Q: SFFN Corp. purchased the entire business of AZC, Inc. including all its assets and liabilities for…

A: goodwill to be recognized by SFFN as a result of its acquisition of AZC =    purchase consideration…

Q: ABC Company acquired all of XYZ Corporation's assets and liabilities on June 30, 20X1. XYZ reported…

A: Book value and fair value Book value is based on the original old purchase price where annual…

Q: S Company had the following balances at the time it was acquired by P Company: Cash…

A:

Q: ABC Company acquired all of XYZ Corporation’s assets and liabilities on June 30, 20X1. XYZ reported…

A: Net Assets: Net Assets is the differential amount of total assets and total obligations of a…

Q: SAR Co paid P110,000 for the net assets of Ken Corp. At the time of the acquisition,the attached…

A: The company will sell assets to gain profits from the sale. The main objective of the company will…

Q: Matrix, Inc. acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2014. The fair value and…

A: 1.

Q: Harold Fishing Gear Company's acquired Sea Breeze Ltd for $450,000. The book values and fair values…

A: Solution: Purchase price of Sea Breeze Ltd = $450,000 Fair value of net assets of Sea Breeze = Fair…

Q: Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, on January 1,…

A:

Q: On September 1, 2017, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000,…

A: Solution: Introduction: Goodwill is an intangible asset that will arise when one company purchases…

Q: Pauly Corporation owns 70% of Shore Company's outstanding common stock. On 01/01/20, Pauly sold a…

A:

Q: On January 1, 20X1, Promo, Inc. purchased 70% of Set Corporation for $469,000. On that date the book…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: TCO C) Floyd Company purchases Haeger Company for $800,000cash on January 1, 2011. The book value of…

A: Consolidation: It can be defined as the process of merging or combining various smaller businesses…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.