1 Long-Term Operating Assets: Acquisition, Cost Allocation, and Derecognition 2 Goodwill and Bargain Purchase Computations 3...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1 Long-Term Operating Assets: Acquisition, Cost Allocation, and Derecognition 2 Goodwill and Bargain Purchase Computations 3 4 The trial balance for the Dark Horse Company follows: 5 6 7 Description Cash Debit Credit $ 30,000 8 Inventory 100,000 9 Property, plant, and equipment - Net 370,000 10 Current liabilities $ 50,000 11 Common stock-No par 150,000 12 Retained earnings 300,000 13 14 Totals $ 500,000 $500,000 15 MPL, Inc. offers to acquire Dark Horse. The additional information is given below: 16 (Requirement 1 assumption) Purchase price S 650,000 17 Purchase price $ 250,000 18 (Requirement 2 assumption) 19 Fair market value of the inventory $ 180,000 20 The plant assets were undervalued by $ 50,000 22 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions 23 tab you will be marked wrong. 24 25 Requirements 26 1 2 27 28 29 Calculate the amount of goodwill or bargain purchase gain to be recorded on the acquisition. Assume now that MPL, Inc. offers to acquire Dark Horse at the purchase price identified in the data table. Determine the amount of goodwill or bargain purchase gain. a. Use a minus sign or parentheses for bargain purchase gain, if any. b. Use cell references from prior calculations, if applicable. 30 31 32 Saving & Submitting Solution 33 1 Save file to desktop. 34 Create folder on desktop, and label COMPLETED EXCEL PROJECTS 35 36 B. 37 b. 38 C. a. 2 Upload and submit your file to be graded. Navigate back to the activity window-screen where you downloaded the initial spreadsheet Click Choose button under step 3; locate the file you just saved and click Open Click Upload button under step 3. 39 d. Click Submit button under step 4 40 41 42 Viewing Results 43 1 Click on Recite tah in MuArrnuntinel ah, INSTRUCTIONS ENTERANSWERS 11. Calculate the amount of goodwill or bargain purchase gain to be recorded on the acquisition. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 2 Instructions tab you will be marked wrong.) 3 4 Fair value of net assets 5 Goodwill (bargain purchase gain) 6 2. Assume now that MPL, Inc. offers to acquire Dark Horse at the purchase price identified in the data table. 7 Determine the amount of goodwill or bargain purchase gain. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 8 Instructions tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 9 10 Goodwill (bargain purchase gain) 11 12 13 1 Long-Term Operating Assets: Acquisition, Cost Allocation, and Derecognition 2 Goodwill and Bargain Purchase Computations 3 4 The trial balance for the Dark Horse Company follows: 5 6 7 Description Cash Debit Credit $ 30,000 8 Inventory 100,000 9 Property, plant, and equipment - Net 370,000 10 Current liabilities $ 50,000 11 Common stock-No par 150,000 12 Retained earnings 300,000 13 14 Totals $ 500,000 $500,000 15 MPL, Inc. offers to acquire Dark Horse. The additional information is given below: 16 (Requirement 1 assumption) Purchase price S 650,000 17 Purchase price $ 250,000 18 (Requirement 2 assumption) 19 Fair market value of the inventory $ 180,000 20 The plant assets were undervalued by $ 50,000 22 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions 23 tab you will be marked wrong. 24 25 Requirements 26 1 2 27 28 29 Calculate the amount of goodwill or bargain purchase gain to be recorded on the acquisition. Assume now that MPL, Inc. offers to acquire Dark Horse at the purchase price identified in the data table. Determine the amount of goodwill or bargain purchase gain. a. Use a minus sign or parentheses for bargain purchase gain, if any. b. Use cell references from prior calculations, if applicable. 30 31 32 Saving & Submitting Solution 33 1 Save file to desktop. 34 Create folder on desktop, and label COMPLETED EXCEL PROJECTS 35 36 B. 37 b. 38 C. a. 2 Upload and submit your file to be graded. Navigate back to the activity window-screen where you downloaded the initial spreadsheet Click Choose button under step 3; locate the file you just saved and click Open Click Upload button under step 3. 39 d. Click Submit button under step 4 40 41 42 Viewing Results 43 1 Click on Recite tah in MuArrnuntinel ah, INSTRUCTIONS ENTERANSWERS 11. Calculate the amount of goodwill or bargain purchase gain to be recorded on the acquisition. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 2 Instructions tab you will be marked wrong.) 3 4 Fair value of net assets 5 Goodwill (bargain purchase gain) 6 2. Assume now that MPL, Inc. offers to acquire Dark Horse at the purchase price identified in the data table. 7 Determine the amount of goodwill or bargain purchase gain. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 8 Instructions tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 9 10 Goodwill (bargain purchase gain) 11 12 13
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
In 2022, Wanda Inc. decided NOT to pay any dividends. The shareholder equity section of balance sheet as at December 31, 2022 included the following: Common shares, 38,000 shares outstanding...
-
A double-decker bus shown in Figure Q2a is to be assessed for its vertical heave response to varying road surface topography when travelling at speed. Figure Q2b shows a simplified 2DOF heave model....
-
A teacher conducted a summative assessment in science on 2 sections: Section Garnet and Section Sapphire. The following shows the data and result of the test for each section: Section Garnet: N = 35,...
-
Show the income statement, cash flow statement and balance sheet of the company at 31/12/2020 if: 1. The company start its operations on June 1st, 2020. Over the period, it sells 50 laptop for $400....
-
Accounts Receivable Turnover for Coca-Cola and PepsiCo The following information was summarized from the 2008 annual report of The Coca-Cola Company: (In millions) Trade accounts receivable, less...
-
Assuming the same set of data is used in their calculation, which will always be the smaller (or perhaps equal) value, the correlation coefficient or the coefficient of determination?
-
Yes. If a firm is able to buy on credit at all, if the credit terms include a discount for early payment, and if the firm pays during the discount period, it has obtained "free" trade credit....
-
The stockholders' equity section of Lester Company's balance sheet follows: Required a. How many shares of common stock are authorized, issued, and outstanding? b. What is the par value per share of...
-
Miller Manufacturing has a target debtequity ratio of 0.60. Its cost of equity is 14 percent, and its cost of debt is 8 percent. If the tax rate is 38 percent, what is Millers WACC? (Do not round...
-
Aaron, who has a mass of 1 0 1 kg , has jumped from a plane and is falling through the air at his terminal velocity, a speed of 5 1 m / s . How much work does the force of air resistance do against...
-
To help plan the nature, timing, and extent of substantive procedures, preliminary analytical procedures should focus on a. Enhancing the auditors understanding of the clients business and of events...
-
During the initial planning phase of an audit, a CPA most likely would a. Identify specific internal control activities that are likely to prevent fraud. b. Evaluate the reasonableness of the clients...
-
Find the 70th percentile. A customer service representative must spend different amounts of time with each customer to resolve various concerns. The amount of time spent with each customer can be...
-
Miller Retailing, Inc., maintains a staff of three full-time internal auditors who report directly to the controller. In planning to use the internal auditors to help in performing the audit, the...
-
Discuss the format of a report on condensed financial statements. What type of assurance is provided?
-
How much of their losses are currently not deductible by amir and francesca because of the tax-basis limitation
-
Complete the equations for the following equilibria and calculate Keq where the Keq expression includes [HO]. Be sure to enter Keq in proper scientific notation. (a) ammonia (acting as a base) reacts...
-
Below are the financial accounts of Dodge Realty, Inc. The company has just completed its 10th year of operations ended December 31, 20x8. Required 1. Prepare the income statement, statement of...
-
The following are the accounts of Creative Advertising, Inc., an agency that develops marketing materials for print, radio, and television. The agencys first year of operations ended on January 31,...
-
Southwest Airlines Co. is one of the most successful airlines in the United States. Its annual report contains this statement: We are a company of People, not Planes. That is what distinguishes us...
Study smarter with the SolutionInn App