Homework Answers
Goodwill is the excess of purchase consideration over fair value of net assets purchased
therefore,
goodwill = purchase consideration - fair value of net assets
= $5,490,000 - $4,580,000
= $910,000
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Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common...
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock...
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...
Check my work Problem 7-3B Calculate and record goodwill (LO7-2) 1.66 points Northern Equipment Corporation purchased...
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...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Re...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,560,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Fair Value $710,000 $ 610,000 4,060,000 4,760,000 190,000 (790,000)(790,000) Book Value Accounts Receivable Buildings Equipment Accounts Payable 100,000 Net assets $4,080,000 4,770,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill Goodwill $1,000 View transaction list Journal entry worksheet Record the acquisition of Pioneer Equipment Rental. Note: Enter debits...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,530,000 in...
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
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...
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...
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...
Required information Problem 7-6B Record amortization and prepare the intangible assets section (L07-5) (The following information...
Required information Problem 7-6B Record amortization and prepare the intangible assets section (L07-5) (The following information applies to the questions displayed below.) The following information relates to the intangible assets of Lettuce Express a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,470,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,323,000. b. Included in the assets purchased from Farmers Produce was a patent for a method of...
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc.,...
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)...
Required Information Exercise 7-17A Record the sale of equipment (L07-6) [The following information applies to the ques...
Required Information Exercise 7-17A Record the sale of equipment (L07-6) [The following information applies to the questions displayed below.] Abbott Landscaping purchased a tractor at a cost of $36,000 and sold it three years later for $18,000. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2.000 residual value. Tractors are included in the Equipment account. Exercise 7-17A Part 1 Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No...
Required Information Problem 7-8A Record the disposal of equipment (L07-6) The following information applies to the...
Required Information Problem 7-8A Record the disposal of equipment (L07-6) The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $600,000. The ovens originally cost $800.000, had an estimated service life of 10 years, had an estimated residual value of $50,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery Problem 7-8A Part 4...
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...
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...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,560,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Fair Value $710,000 $ 610,000 4,060,000 4,760,000 190,000 (790,000)(790,000) Book Value Accounts Receivable Buildings Equipment Accounts Payable 100,000 Net assets $4,080,000 4,770,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill Goodwill $1,000 View transaction list Journal entry worksheet Record the acquisition of Pioneer Equipment Rental. Note: Enter debits...
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
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...
Required information Problem 7-6B Record amortization and prepare the intangible assets section (L07-5) (The following information applies to the questions displayed below.) The following information relates to the intangible assets of Lettuce Express a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,470,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,323,000. b. Included in the assets purchased from Farmers Produce was a patent for a method of...
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)...
Required Information Exercise 7-17A Record the sale of equipment (L07-6) [The following information applies to the questions displayed below.] Abbott Landscaping purchased a tractor at a cost of $36,000 and sold it three years later for $18,000. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2.000 residual value. Tractors are included in the Equipment account. Exercise 7-17A Part 1 Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No...
Required Information Problem 7-8A Record the disposal of equipment (L07-6) The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $600,000. The ovens originally cost $800.000, had an estimated service life of 10 years, had an estimated residual value of $50,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery Problem 7-8A Part 4...
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