Cash and receivables $180,000 $180,000 Computing equipment 5,630,000 6,820,000 7 years Patented technology 170,000 4,140,000 5
Question:
Cash and receivables\ $180,000\ $180,000\ \ Computing equipment\ 5,630,000\ 6,820,000\ 7 years\ Patented technology\ 170,000\ 4,140,000\ 5 years\ Trademark\ 220,000\ 2,140,000\ infinite\ Liabilities\ (255,000)\ (255,000)\ \ \ \ \ Goodwill has indefinite useful life.\ \ During the following two years, Adam reported net income and dividends as follows:\ \ Net Income\ Dividends Declared\ 2020\ $\ 1,940,000\ $\ 220,000\ 2021\ \ 2,125,000\ \ 230,000\ \ Required:\ a. How much of Randoms $4,100,000 payment for Adam is attributable to goodwill?\ b. What amount should Random report for its Equity in Investees Income on its income statements for 2020 and 2021?\ c. What amount should Random report for its Investment in Investee on its balance sheets at the end of 2020 and 2021?
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik