Question

Benny’s Restaurants acquired Hungry Boy Diners. The financial records of Hungry Boy Diners included the following:
Book Value of Assets................................ $2.4 million
Market Value of Assets............................. 2.7 million
Liabilities................................................... 2.2 million
Requirements
1. Make the journal entry to record Benny’s Restaurants’ purchase of Hungry Boy Diners for $3 million cash, including any goodwill.
2. How should Benny’s Restaurants account for this goodwill after acquiring Hungry Boy Diners? Explain in detail.


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  • CreatedJuly 08, 2015
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