Given each scenario presented below, select the best option from the option list provided. Each answer choice may be used once, more than once, or not at all.

AB$1$ScenarioOption List$2$After$75$years$,$Bethel$$Concrete$$was$$liquidating$.$Wally$$Construction purchased all of its used dump trucks and front loaders $($machinery and equipment$).$ What is the initial accounting recognition for these acquired assets?

$3$As part of this acquisition, Wally spent between $$500-$ $$1,000$ to register each asset $($as required by state law and the purchase agreement$)$ purchased from Bethel Concrete. What is the accounting treatment for these registration fees?

$4$Sky Air acquired all of the assets and liabilities of Queen Air. Queen Air provides fixed wing tours to local sights. No disruption in operations is expected. What is the initial accounting recognition for these acquired assets?

$5$Sky Air incurred several thousand dollars in accounting and legal fees directly related to the purchase of Queen Air. What is the proper accounting for these professional fees?

$6$Maurice Plumbing, an S corporation, purchased Walker Plumbing, a sole proprietorship and active business for $$125,000.$ Maurice assigned fair market values to all the assets and liabilities, which totaled a net amount of $$100,000.$ What is the accounting treatment for the remaining $$25,000?$

$7$Maurice Plumbing, an S corporation, purchased various plumbing tools from Henry Walker $($owner of Walker Plumbing$)$ for $$17,000.$ What is the initial accounting recognition for these acquired assets?

$8$The fair value of the tools Maurice purchased from Henry Walker was $$15,000.$ What is the goodwill treatment for this purchase?

$9$Vicki is the sole owner of Cozy Quilts. Vicki$$s mother, Vanessa, is the sole owner of Magic Quilting. Both have brick and mortar locations in their local community. Vanessa has decided to retire and is selling Magic Quilting to Cozy Quilts. How should Vicki treat the initial recognition of assets acquired from Magic Quilting?

$10$The net fair value of Magic Quilting is $$450,000.$ Assuming the final purchase price is $$500,000,$ how is the appreciation treated?

$11$Cozy Quilts incurred legal fees for the purchase of Magic Quilting. How are these legal fees accounted for?