Transaction | General Journal | Debit | Credit |
1 | Accounts receivable | $610,000 | |
Building | $4,760,000 | ||
Equipment | $190,000 | ||
Goodwill | $790,000 | ||
Accounts Payable | $790,000 | ||
Cash | $5,560,000 | ||
Working | |||
Purchase price | $5,560,000 | ||
Less: | |||
Fair value of assets acquired | $5,560,000 | ||
Less: Fair value of liabilities assumed | $790,000 | ||
Fair value of identifiable net assets | $4,770,000 | ||
Goodwill | $790,000 | ||
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Re...
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer’s assets and liabilities were: Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,490,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value $ 640,000 3,990,000 120, eee (860, 980) $ 3,890,000 Fair value $ 540, eee 4,690,000 210, eee (860,000) $4,588,888 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,530,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value $ 680,000 4,030,000 100,000 (820,000) $3,990,000 Fair Value $ 580,000 4,730,000 190,000 (820,000) $4,680,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill
Check my work Problem 7-3B Calculate and record goodwill (LO7-2) 1.66 points Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value $ 580,000 3,930,000 120,000 (920,000) $3,710,000 Accounts Receivable Buildings Equipment Accounts Payable Net assets Fair Value $ 480,000 4,630,000 210,000 (920,000) $4,400,000 eBook Print Required: 1. Calculate the amount Northern Equipment should report for goodwill. References Goodwill...
i just need the answer to second part. I don't know what else I have to add to journal entry. Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value $ 700,000 4,050,000 120,000 (800,000) $4,070,000 Fair Value $ 600,000 4,750,000 210,000 (800,000) $4,760,000 Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Problem 7-3A Calculate and record goodwill (LO7-2) Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,800,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were: Fair Value $ 1,000,000 9,300,000 1,100,000 (1,500,000) (1,500,000) 9,900,000 Book Value 1,200,000 7,900,000 180,000 Accounts Receivable Equipment Patents Notes Payable $7,780,000 Net assets Required: 1. Calculate the amount Fresh Cut should report for goodwill. (Enter your answer in millions rounded to 2 decimal places...
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,100,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: 15 Book Value Fair Value Accounts receivable 1,350,000 $ 1,175,000 1,800,000 3100,000 8,100,000 10,725,000 2,100,000 2,100,000 3,600,000 3,225,000 Inventories Property, plant, and points equipment Accounts payable Bonds payable Print Required: Prepare the journal entry to record the acquisition by Brewer Company. (If no entry is required...
please show work son Corporation acquired all of the outstanding common stock of Smith Corporation or 12,920,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $9,400,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions: Book Value Fair Value $2,900,000 S 2,540,000 Property, plant, and equipment 9,600,000 11,160,000 360,000 1,520,000 Receivables Intangible assets Required: 1. Calculate the amount paid for goodwill. 2. Prepare the...
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $450 million. The fair value of Harman's identifiable tangible and intangible assets totaled $533 million, and the fair value of liabilities assumed by Pesky was $170 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information: Fair value of Harman, Inc. Fair value of Harman's net assets (excluding goodwill)...
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $590 million. The fair value of Harman's identifiable tangible and intangible assets totaled $631 million, and the fair value of liabilities assumed by Pesky was $169 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information: Fair value of Harman, Inc. Fair value of Harman's net assets (excluding goodwill)...