Fair market values for each of the securities owned by the company appear below:                 

   Security           Fair value

Gershwin Company stock 25 $   /share

Sherwood Company stock 21 $  

/share Disney Company stock 52 $  /share

Berlin Company stock 64 $  /share

Caterpillar, Inc. stock 36 $  /share

Tunick Company bonds 99% of par

Rodgers Company bonds 97% of par

Bock Company bonds 101% of par

Hammerstein Company bonds 98% of par

Hart Company bonds 103% of par

2)   Future cash flow information and fair market values for intangible assets are as follows:

Franchise:  

Expected future cash flows: 30,000 $         

Fair value: 25,000 $            

Patent:  

Expected future cash flows: 70,000 $           

Fair value: 60,000 $            

Goodwill:

The Camden  Equipment  Division reports the following amounts on its balance sheet dated 12/31/x2:

Current Assets 150,000 $         

Non‐current Assets 800,000       

  Current Liabilities 200,000       

  Non‐current Liabilities 350,000            

The recorded amount of the net assets (excluding Goodwill) for the Camden  Equipment  Division is the same as fair value except for the following: ‐

‐  The fair value of equipment is 50,000 $             higher than its carrying value. ‐‐

  The fair value of the patent is stated above:   $ 60,000    [Hint:  The difference between the carrying value and the fair value of the patent as of 12/31/x2 is also part of the determination of the fair value of the net identifiable assets at 12/31/x2.]

For  the Camden  Equipment  Division , assume the fair value at 12/31/x2 is: 380,00

Question is : l)   The balance sheet presentation for each of the following accounts on 12/31/x2:

i.    Note Receivable "2"

ii.   Note Payable "A"

iii.  Bond Payable "A"

iv.   Bond Payable "B"

v.    Heavy Duty Equipmen

Answer rating: 100% (QA)

i Note Receivable 2 Debit Note Receivable 2 Credit Cash ii ... View the full answer