Question

Tico’s Restaurants acquired Tin Bus Diners. The financial records of Tin Bus Diners included the following:
Book Value of Assets........................................................................ $2,300,000
Market Value of Assets..................................................................... 2,750,000
Liabilities........................................................................................... 2,250,000
Requirements
1. Make the journal entry to record Tico’s Restaurants’ purchase of Tin Bus Diners for $3,200,000 cash, including any goodwill.
2. How should Tico’s Restaurants account for this goodwill after acquiring Tin Bus Diners? Explain in detail.


$1.99
Sales0
Views19
Comments0
  • CreatedJuly 08, 2015
  • Files Included
Post your question
5000