Ajax purchased the assets ($800,000) and liabilities ($600,000) of a company, for which he paid $300,000 on April 10, 2023. The company owns the rights to a unique product. Subsequent to the purchase of the company, a competitor appeared. On December 31, 2023, Ajax assessed that the value of the goodwill that his company owned was now worth $80,000.

What is the appropriate journal entry to reflect the reduction in the value of goodwill?

Alee Inc. is an international producer of aluminum through mining. On January 1, 2023, it spent $10,000,000 cash to purchase a mine with an estimated residual value of zero. The company also incurred additional expenditures of $2,000,000 to prepare the mine for the extraction. Alee Inc. expects to use this mine for 10 years with an expected capacity of 500,000 tonnes over that time. 

What is the depletion rate for each tonne to be extracted?

Answer rating: 100% (QA)

1 Journal entry to reflect the reduction in the value of goodwill To record the reduction in the val... View the full answer