Homework Answers
total assets at fair value = current assets + property, plant & equipment + other assets
= $7500000 + $14000000 + $1500000 = $23000000
total liabilities at fair value = current liabilities + long term liabilities
= $4000000 + $5500000 = $9500000
net assets = total assets at fair value - total liabilities at fair value
= $23000000 - $9500000 = $13500000
Goodwill = consideration paid - net assets
= $17,000,000 - $13,500,000
= $3,500,000
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Required: Prepare a summary journal entry to record expenditures Tented to inna E 10-6 Goodwill •...
On March 31, 2016, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation...
On March 31, 2016, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 6,000,000 $ 7,500,000 Property, plant, and equipment 11,000,000 14,000,000 Other assets 1,000,000 1,500,000 Current liabilities 4,000,000 4,000,000 Long-term liabilities 6,000,000 5,500,000 Required: Calculate the amount paid for goodwill.
Exercise 10-6 Goodwill [LO10-1) On March 31, 2018, Wolfson Corporation acquired all of the outstanding common...
Exercise 10-6 Goodwill [LO10-1) On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,900,000 in cash The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other sta Current liabilities Long-term liabilities Book Value $6,900,000 11,900,000 1,090,000 4,900,000 6, 900,000 Fair Value $8,400,000 11,900,000 1.590,000 1.900.000 5,400,000 Required: Calculate the amount paid for goodwill Goodwil
Exercise 10-6 Goodwill [LO10-1] On March 31, 2018, Wolfson Corporation acquired all of the outstanding common...
Exercise 10-6 Goodwill [LO10-1] On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 7,000,000 $ 8,500,000 Property, plant, and equipment 12,000,000 15,000,000 Other assets 1,100,000 1,600,000 Current liabilities 5,000,000 5,000,000 Long-term liabilities 7,000,000 6,500,000 Required: Calculate the amount paid for goodwill. The answer is NOT $3850000- I got...
10-5 only To aid extraction, Jackpot purchased some new equipment on July 1, 2018, for $120,000....
10-5 only
To aid extraction, Jackpot purchased some new equipment on July 1, 2018, for $120,000. After the copper is removed from this mine, the equipment will be sold. The credit-adjusted, risk-free rate of interest is 10%. Required: 1. Determine the cost of the copper mine. 2. Prepare the journal entries to record the acquisition costs of the mine and the purchase of equipment. E 10-5 Intangibles • L010-1 In 2018, Bratten Fitness Company made the following cash purchases: 1....
Tasks: Prepare entry A to recognize goodwill portion of the original acquisition fair value. Prepare entry...
Tasks:
Prepare entry A to recognize goodwill portion of the original
acquisition fair value.
Prepare entry I to eliminate intra-entity income accrual for the
current year based on the parent's usage of the partial equity
method
Prepare entry D to eliminate intra-entity dividend transfers
Prepare entry E
Prepare entry *C.
Prepare entry S to eliminate beginning of year stockholders'
equity accounts of subsidiary—the retained earnings balance has
been adjusted for 2017 income and dividends
Prepare entry A to recognize original...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Exercise 10-6 Goodwill [LO10-1) On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,900,000 in cash The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other sta Current liabilities Long-term liabilities Book Value $6,900,000 11,900,000 1,090,000 4,900,000 6, 900,000 Fair Value $8,400,000 11,900,000 1.590,000 1.900.000 5,400,000 Required: Calculate the amount paid for goodwill Goodwil
10-5 only
To aid extraction, Jackpot purchased some new equipment on July 1, 2018, for $120,000. After the copper is removed from this mine, the equipment will be sold. The credit-adjusted, risk-free rate of interest is 10%. Required: 1. Determine the cost of the copper mine. 2. Prepare the journal entries to record the acquisition costs of the mine and the purchase of equipment. E 10-5 Intangibles • L010-1 In 2018, Bratten Fitness Company made the following cash purchases: 1....
Tasks:
Prepare entry A to recognize goodwill portion of the original
acquisition fair value.
Prepare entry I to eliminate intra-entity income accrual for the
current year based on the parent's usage of the partial equity
method
Prepare entry D to eliminate intra-entity dividend transfers
Prepare entry E
Prepare entry *C.
Prepare entry S to eliminate beginning of year stockholders'
equity accounts of subsidiary—the retained earnings balance has
been adjusted for 2017 income and dividends
Prepare entry A to recognize original...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
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