Question

Copy oma Parte BI- -AA- $. B C E F G A D 6. You purchase the Giovanni's truck because the owner is just tired of waiting for the tourists to come back. You are betting that when the 3 tourists return, they will again make Giovanni's Shrimp Truck extremely 4 profitable. You pay the owner $1,000,000 in cash. A certified appraiser has 5 made a report for you that contains the following information: Estimated Salvage 6 7 Fair Market Value at time of purchase 8 Truck 9 Land 10 Improvements (Dining Area) 11 Food-prep building 12 Refrigerators Estimated Life 20,000 you plan to sell and replace within year 500,000 50,000 4 yrs 240,000 25 yrs 10,000 you plan to sell and replace within year 15,000 you plan to sell and replace within year 3,200 3,000 2 yrs 15,000 10 yrs 5,000 13 Deep-Fryer/Stove/Grill/Exhaust 14 Prepaid Insurance 15 Computers/Point of Sale Terminals 16 Cash Safe 17 18 Assuming that you have formed on that will use accrual accountina Sve OS Question Question Question three o

Answer 1

The Statement of Financial position in date of Sale will be as hereunder:

Assets AMOUNT Land 500000 Truck 20000 Improvements 50000 Food-prep Building 240000 Refrigerator 10000 Deep Fryer 15000 Computer 3000 Cash safe 15000 Goodwill** 147000 TOTAL ASSETS 1000000 Liabilities AMOUNT Capital 1000000 TOTAL LIABILITIES 1000000 ** Balancing figure