Question: Middle Telecom provides communication services in Iowa Nebraska the Dakotas

Middle Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Middle purchased goodwill as part of the acquisition of Shipley Wireless Enterprises, which had the following figures:
Book value of assets ...... $ 750,000
Market value of assets....... 900,000
Market value of liabilities ..... 550,000
Requirements
1. Journalize the entry to record Middle’s purchase of Shipley Wireless for $400,000 cash plus a $600,000 note payable.
2. What special asset does Middle’s acquisition of Shipley Wireless identify? Flow should Middle Telecom account for this asset after acquiring Shipley Wireless? Explain in detail.


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  • CreatedJune 15, 2015
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