When one media company buys another, goodwill is often the most costly asset acquired. TXL Publishing paid $650,000 to acquire the Thrifty Nickel , a weekly advertising paper. At the time of the acquisition, the Thrifty Nickel’s balance sheet reported total assets of $800,000 and liabilities of $400,000. The fair market value of the Thrifty Nickel’s assets was $900,000. The fair market value of liabilities was $400,000. How much goodwill did TXL Publishing purchase as part of the acquisition of the Thrifty Nickel? Journalize TXL Publishing’s acquisition of the Thrifty Nickel
Answer to relevant QuestionsOn April 1, Miracle Applications paid $1,500,000 to acquire a patent on software. Miracle Applications expects the patent to have a useful life of 4 years.Requirements1. Journalize the entry to record the purchase of the ...Lopez Transfer manufactures conveyor belts. Early in August 2013, Lopez Transfer constructed its own building at a materials, labor, and overhead cost of $950,000. Lopez Transfer paid cash for the construction costs. Lopez ...Essex County Transport is a large trucking company. Essex County Transport uses the units-of-production (UOP) method to depreciate its trucks. In 201 1 , Essex County Transport acquired a Mack truck costing $400,000 with a ...Riverwood Tanning Salon bought three tanning beds in a $19,000 lump-sum purchase. An independent appraiser valued the tanning beds as follows: Tanning Bed Appraised Value1 $ 10,0002 ...Whalen Mining paid $615,000 for the right to extract mineral assets from a 500,000-ton mineral deposit. In addition to the purchase price, Whalen Mining also paid a $1,400 filing fee, a $3,600 license fee to the state of ...
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