Xie Company purchased Atlantic Transportation Co for ( $ 1,200,000 ) The fair market values of the assets purchased were as follows No liabilities were assumed Required a Calculate the amount of goodwill purchased b Prepare the journal entry to record the amortization of the franchise fee at the en...

The Answer is in the image, click to view ...

Xie Company purchased Atlantic Transportation Co. for ($ 1,200,000). The fair market values of the assets purchased

Question:

Xie Company purchased Atlantic Transportation Co. for $\$ 1,200,000$. The fair market values of the assets purchased were as follows. No liabilities were assumed.

image text in transcribed

Required

a. Calculate the amount of goodwill purchased.

b. Prepare the journal entry to record the amortization of the franchise fee at the end of year 1 .

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Financial Accounting Concepts

ISBN: 978-0073527123

7th Edition

Authors: Thomas Edmonds

See More Books

Question Posted: May 16, 2024 09:00 AM

See More Questions

Dark Ale Brewery includes 1 coupon in each case of beer that it packs. A CD is offered as a premium for every 20 coupons that customers send in along with $2.00. In Year 3, Dark Ale Brewery purchased...
Ambrosia Ltd was incorporated on 1 January 2014. A private placement of 5000 shares at $1 a share was made and the public was invited to subscribe for 45 000 shares at the same price. The public...
Cafe Ol Company acquired a fast-food restaurant for $1,500,000. The fair market values of the assets acquired were as follows. No liabilities were assumed. Equipment .........$380,000 Land...
Find an equation of the tangent plane at the given point. f(x, y) = x + y, (4,1)
Use Equation (5.16) to calculate the de Broglie wavelength of a N2 molecule at 300 K.
Is it ever appropriate for society to: Let someone starve? Let someone be homeless? Forbid someone to eat chocolate?
What is self-interest?
On January 1, 2017, Bare Trees Company signed a three-year noncancelable lease with Dreams Inc. The lease calls for three payments of $62,258.09 to be made at each year-end. The lease payments...
1.Company A is financing a new truck with a loan of Rs.10,000 to be repaid in 5 annual end-of-year installments at the rate of 8%, whereas, the second option with another company, Company B, is...
Sulley Equipment Manufacturing Co. purchased the assets of Malcom Inc., a competitor, in 2011. It recorded goodwill of $\$ 50,000$ at purchase. Because of defective machinery Malcom had produced...
Venus Company owned a service truck that was purchased at the beginning of 2011 for $\$ 20,000$. It had an estimated life of three years and an estimated salvage value of $\$ 2,000$. Venus uses...
Seashell Corporation has 25,000 shares outstanding of 8%, $10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a...
Samar likes to snack frequently during the day, but he wants his snacks to provide at least 24 grams of protein per day. Each Snack-Pack provides 4 grams of protein, and each Minibite provides 1...
You want to build a factory to make envelopes.. It will cost $26.62 to build and install. Expect $11.5 in annual after tax cash flows for 15 years starting at the end of year 1. At the end of 15...
As a Project Manager, you may have to manage a team virtually as well as manage cross-culturally which poses some potential issues. What obstacles do you anticipate could occur in managing a...
What are some type of compensation and benefits an organization could offer to engage, attract, recruit, and retain a diverse and strong workforce. What factors must be considered about the workforce...
A centrifugal pump discharges 53 litres/s of water when the delivery and suction static heads referred to the pump centre-line are 34 m above and 1.9 m below atmospheric pressure respectively. The...
Two industrial plants represent balanced three-phase loads. The plants receive their power from a balanced three-phase source with a line voltage of 4.6 kV rms. Plant 1 is rated at 300 kVA, 0.8 pf...
During the year land was revalued and the surplus reported as Revaluation surplus; and an asset costing 80,000, written down to 38,000, was sold for 40,000. Identify the cost of any non-current...
What is a sampling distribution and how does it differ from other distributions
An environmental scientist wishes to investigate the relationship between the size the drainage area for a river and the speed of the steamflow at a station further down the river. The scientist...
Question 1 (5 points) What innovation made the transonic compressor possible? The development of the centrifugal-flow compressor. The development of high-strength titanium alloys. The development of...

Xie Company purchased Atlantic Transportation Co. for ($ 1,200,000). The fair market values of the assets purchased

Question:

Equipment Land $400,000 100,000 Building 400,000 Franchise (10-year life) 20,000

Step by Step Answer:

Fundamental Financial Accounting Concepts

Students also viewed these Business questions