On 6/1/23, Santa wants to review some trading options for his sleds. First, here is some...

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On 6/1/23, Santa wants to review some trading options for his sleds. First, here is some information about his old sled: Purchase Price on 12/31/20: $611,000 Accumulated Depre up to date: $76,000 Fair Value on 6/1/23: $512,000 a. For the new Sled option #1, Santa could purchase it using the old sled trade in plus $14,500 cash paid. The new Sled #1 has a fair value of $601,000. The old and new sleds would be different. What would the journal entry be for this trade? (3 points) b. For the new Sled option #2, Santa could purchase it using the old sled trade in plus receive $4,700 cash. The new Sled #2 has a fair value of $510,000. The old and new sleds would be similar. What would the journal entry be for this trade? (3 points) 3. On 2/1/23, Santa paid $29,000 for a customer list labeled the "Naughty and Nice." He incurred legal fees of $8,000, filing expenses of $1,500 to obtain this customer list, and $19,000 of internal labor charges after the intangible asset is in place. Santa plans to use this list over the next 14 years while the kids are still young enough to believe in Santa. At the end of its useful life, he will be able to sell it for $2,700 to colleges for enrollment. (3 points each) a. How much would Santa amortize this Customer List for in 2023? b. How much would Santa amortize this Customer List for in 2024? c. On 1/1/2025, Santa determined that he would only receive future cash flows and a fair value of $30,000 for owning this customer list. With that said, is Santa's list impaired? If so, by how much? On 6/1/23, Santa wants to review some trading options for his sleds. First, here is some information about his old sled: Purchase Price on 12/31/20: $611,000 Accumulated Depre up to date: $76,000 Fair Value on 6/1/23: $512,000 a. For the new Sled option #1, Santa could purchase it using the old sled trade in plus $14,500 cash paid. The new Sled #1 has a fair value of $601,000. The old and new sleds would be different. What would the journal entry be for this trade? (3 points) b. For the new Sled option #2, Santa could purchase it using the old sled trade in plus receive $4,700 cash. The new Sled #2 has a fair value of $510,000. The old and new sleds would be similar. What would the journal entry be for this trade? (3 points) 3. On 2/1/23, Santa paid $29,000 for a customer list labeled the "Naughty and Nice." He incurred legal fees of $8,000, filing expenses of $1,500 to obtain this customer list, and $19,000 of internal labor charges after the intangible asset is in place. Santa plans to use this list over the next 14 years while the kids are still young enough to believe in Santa. At the end of its useful life, he will be able to sell it for $2,700 to colleges for enrollment. (3 points each) a. How much would Santa amortize this Customer List for in 2023? b. How much would Santa amortize this Customer List for in 2024? c. On 1/1/2025, Santa determined that he would only receive future cash flows and a fair value of $30,000 for owning this customer list. With that said, is Santa's list impaired? If so, by how much?

Answer rating: 100% (QA)

a Journal entry for Sled Option 1 Date 6123 1 Tradein of old sled Debit Accumulated Depreciation Old ... View the full answer