The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $15,300. The fair value of the assets is $89,200 and the fair value of its liabilities is $15,300. Longhorn paid Cattleman's $83,420 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of:
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The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $15,300. The fair value of the assets is $89,200 and the fair value of its liabilities is $15,300. Longhorn paid Cattleman's $83,420 to acquire all of its assets and liabilities. Longhorn should record
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- The balance sheet of Cattleman's Steakhouse shows assets of $86,400 and liabilities of $13,500. The fair value of the assets is $90,000 and the fair value of its liabilities is $13,500. Longhorn paid Cattleman's $82,820 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of: =6320? Please help me with solution I am confused in this and don't give image in answer thankuPainted Desert has acquired several companies. Assume that Painted Desert purchased Oak Tree Unlimited for $14,000,000 cash. The book value of Oak Tree Unlimited's assets is $14,000,000 (fair value, $15,000,000), and it has liabilities of $13,000,000 (fair value, $13,000,000). Requirements 1. Compute the cost of goodwill purchased by Painted Desert. 2. Record the purchase of Oak Tree Unlimited by Painted Desert. Requirement 1. Compute the cost of goodwill purchased by Painted Desert. Purchase price to acquire Oak Tree Unlimited Fair value of Oak Tree Unlimited's assets Less: Fair value of Oak Tree Unlimited's liabilities Less: Fair value of Oak Tree Unlimited's net assets Goodwill Requirement 2. Record the purchase of Oak Tree Unlimited by Painted Desert. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit…Java Dreams shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and the fair value of its liabilities is $15,000. One Mean Bean paid Java Dreams $95,000 to acquire all of its assets and liabilities. One Mean Bean should record goodwill on this purchase as: $20,000 $3,600 $5,000 $23,600
- Marty's Mart paid $270,000 to acquire Turbo Gas, a corner store and gas station. At the time of the acquisition, Turbo Gas' balance sheet reported total assets of $80,000 and liabilities of $40,000. The fair value of Turbo Gas' assets was $60,000. The fair value of Turbo Gas' liabilities was $40,000. Requirements 1. How much goodwill did Marty's Mart purchase as part of the acquisition of Turbo Gas? 2. Journalize Marty's Mart's acquisition of Turbo Gas. Requirement 1. How much goodwill did Marty's Mart purchase as part of the acquisition of Turbo Gas? Purchase price to acquire Turbo Gas Fair value of Turbo Gas' assets Less: Fair value of Turbo Gas' liabilities Less: Fair value of Turbo Gas' net assets GoodwillRobinson Company purchased Franklin Company at a price of $3,820,000. The fair market value of the net assets purchased equals $2,750,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,520,000 of goodwill. Should Robinson Company record this goodwill? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of goodwill that Robinson records at the purchase date? GoodwillPrincess has acquired several other companies. Assume that Princess purchased Kittery for $6,000,000 cash. The book value of Kittery's assets is $16,000,000 (market value, $18,000,000), and it has liabilities of $14,000,000 (market value, $14,000,000). Requirements 1. 2. Compute the cost of goodwill purchased by Princess. Record the purchase of Kittery by Princess. Requirement 1. Compute the cost of goodwill purchased by Princess. Purchase price to acquire Kittery Market value of Kittery's assets Less: Market value of Kittery's liabilities Less: Market value of Kittery's net assets Goodwill Date 4 Requirement 2. Record the purchase of Kittery by Princess, Inc. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation 6000000 10 Debit Credit
- Robinson Company purchased Franklin Company at a price of $3,950,000. The fair market value of the net assets purchased equals $2,860,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,400,000 of goodwill. Should Robinson Company record this goodwill? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Does Robinson amortize goodwill at year-end? Does Robinson amortize goodwill at year-end?Perkins has acquired several other companies. Assume that Perkins purchased Kettle for $11,000,000 cash. The book value of Kettle's assets is $15,000,000 (market value, $20,000,000), and it has liabilities o: $10,000,000 (market value, $10,000,000). Requirements Compute the cost of goodwill purchased by Perkins. Record the purchase of Kettle by Perkins. 1. 2. Requirement 1. Compute the cost of goodwill purchased by Perkins. Purchase price to acquire Kettle Market value of Kettle's assets Less: Market value of Kettle's liabilities Less: Market value of Kettle's net assets Goodwill Requirement 2. Record the purchase of Kettle by Perkins, Inc.. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit CreditPrincess has acquired several other companies. Assume that Princess purchased Krandell for $8,000,000 cash. The book value of Krandell's assets is $14,000,000 (market value, $19,000,000), and it has liabilities of $15,000,000(market value, $15,000,000). Requirements 1. Compute the cost of goodwill purchased by Princess. 2. Record the purchase of Krandell by Princess. Requirement 1. Compute the cost of goodwill purchased by Princess. Purchase price to acquire Krandell Market value of Krandell's assets Less: Market value of Krandell's liabilities Less: Market value of Krandell's net assets Goodwill Requirement 2. Record the purchase of Krandellby Princess,Inc. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not abbreviate.)
- Tender, Inc. dominates the snack-food industry with its Tasty-Chip brand. Assume that Tender, Inc. purchased Concord Snacks, Inc. for $10.4 million cash. The market value of Concord Snacks' assets is $18.6 millia and Concord Snacks has liabilities of $12.7 mllion. Requirements 1. Compute the cost of the goodwill purchased by Tender. 2. Explain how Tender will account for goodwill in future years. Requirement 1. Compute the cost of the goodwill purchased by Tender. (Enter amounts in millions to the nearest tenth of a million, XX) Market value of Concord Snacks' net assets: Less Cost of goodwill Requirement 2. Explain how Tender will account for goodwill in future years. has increased decreased in value. If the goodwill's value has increased, future Tender, Inc. will determine whether its goodwill or decreased, In years, V But goodwill's value has if Choose from any list or enter any number in the input fields and then continue to the next question.Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of$124,000, the building's current market value is $31,000, and the equipment's current market value is $155,000. Prepare a schedule allocating the purchase price of$280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The businesssigns a note payable for the purchase price.Red River Bakery purchases land, building, and equipment for a single purchase price of $260,000. However, the estimated fair values of the land, building, and equipment are $126,000, $198,000, and $36,000, respectively, for a total estimated fair value of $360,000. Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment.