Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The...
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Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The following assets and liabilities were purchased: Fair Market Book Value Value Accounts receivables $4 140,000 $ 168,000 820,000 140,000 256,000 1,040,000 276,000 (170,000) Inventory Property, plant, and equipment (net) Patent Liabilities (170,000) Required: 1. What is the appropriate amount that would be recorded for goodwill? 2. Prepare the journal entry for the acquisition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The following assets and liabilities were purchased: Fair Market Book Value Value Accounts receivables $4 140,000 $ 168,000 820,000 140,000 256,000 1,040,000 276,000 (170,000) Inventory Property, plant, and equipment (net) Patent Liabilities (170,000) Required: 1. What is the appropriate amount that would be recorded for goodwill? 2. Prepare the journal entry for the acquisition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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1 A Cash paid for purchase of net assets 1600000 FMV of Assets Account receivBles ... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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