Weekly Assignment - Chapters 7 and 8 Part 1: Goodwill Blue Incorporated purchased Yellow Company with a negotiated purchase price of $900,000 cash. Book values of acquired assets and liabilities were: Assets: Book Value Cash $80,000 Accounts Receivable 30,000 Inventory 20,000 Property and Equipment Cost 700,000 Accumulated Depreciation (200,000) Liabilities: Accounts Payable 150,000 The fair value of cash, accounts receivable, and accounts payable equal the book value. The fair value of inventory is $15,000 and the fair value of property and equipment is $600,000. 1. Calculate the dollar value of Goodwill in this acquisition 2. Record the acquisition journal entry for Blue Incorporated. Part II: Payroll Employees earn $50,000 in the first week of January. They have federal taxes withheld at a rate of 25% and state taxes withheld at a rate of 6% from their paycheck. The employee is also responsible for their portion of the FICA tax at a rate of 7.65%. The company is responsible for their portion of the FICA tax at a rate of 7.65%. In addition, they are responsible for the State Unemployment at a rate of 3% and Federal Unemployment at a rate of 0.8%. 1. Record the following journal entries into the general journal a. Record the Employee Payroll b. Record the Employer Payroll Taxes 2. What is the total cash due to the Federal Government? 3. What is the total cash due to the State Government? 4. What is the total cost of payroll to the company