Chat with AI
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 16
Computing Goodwill and Patents
Taste-T Company has been in business for 30 years and has developed a large group of loyal restaurant customers. Down Home Foods made an offer to buy Taste-T Company for $6,000,000. The market value of Taste-T's recorded assets, net of liabilities, on the date of the offer is $5,600,000. Taste-T also holds a patent for a fluting machine that the company invented (the patent with a market value of $200,000 was never recorded by Taste-T because it was developed internally). How much has Down Home Foods included for intangibles in its offer of $6,000,000! Assuming Taste-T accepts this offer, which company will report Goodwill on its balance sheet
Taste-T Company has been in business for 30 years and has developed a large group of loyal restaurant customers. Down Home Foods made an offer to buy Taste-T Company for $6,000,000. The market value of Taste-T's recorded assets, net of liabilities, on the date of the offer is $5,600,000. Taste-T also holds a patent for a fluting machine that the company invented (the patent with a market value of $200,000 was never recorded by Taste-T because it was developed internally). How much has Down Home Foods included for intangibles in its offer of $6,000,000! Assuming Taste-T accepts this offer, which company will report Goodwill on its balance sheet
Explanation
Verified
Verified
Intangible assets are long lived assets ...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
