Mitre Company acquired Midwest Transportation Company for $1,399,100. The fair market values of the assets acquired...

 

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Mitre Company acquired Midwest Transportation Company for $1,399,100. The fair market values of the assets acquired were as follows. No liabilities were assumed. Equipment Land Building Franchise (10-year life) Required $ 315,900 a. Calculate the amount of goodwill acquired. 198,150 647,000 102,000 b. Prepare the journal entry to record the amortization of the franchise fee at the end of year 1. Mitre Company acquired Midwest Transportation Company for $1,399,100. The fair market values of the assets acquired were as follows. No liabilities were assumed. Equipment Land Building Franchise (10-year life) Required $ 315,900 a. Calculate the amount of goodwill acquired. 198,150 647,000 102,000 b. Prepare the journal entry to record the amortization of the franchise fee at the end of year 1.

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a Calculate the amount of goodwill acquired The amount of goodwill acquired can be calculated as the ... View the full answer