Goodwill project: Bobby's Donuts

Donuts & Coffee opened its doors in 2018 on the corner of Geary and Masonic St. in San Francisco, CA. Originally, the owners Lindsey Kline and Carly Repko had planned on catering to the small businesses in the neighborhood and keeping the business a fun side business to their main day jobs. However, soon they found themselves to be competing with the major local donut shops in the area, particularly due to high demand for their amazing chocolate-glazed donut. As part of their success, on December 31, 2018, they decided to purchase an existing local donut shop "Bobby's Donuts" to further position themselves in the local market. After the acquisition, Bobby's Donuts continued to operate as a separate company and met the conditions of being a separate reporting unit. The consideration paid on December 31, 2018 directly to the shareholders of Bobby's Donuts in exchange for all shares was $53,000. The following accounting facts existed at the time of acquisition (hint: net accounts receivables are $11,000):