Essay
On January 2, 2011, Pilates Inc.paid $700,000 for all of the outstanding common stock of Spinning Company, and dissolved Spinning Company.The carrying values for Spinning Company's assets and liabilities are recorded below.
On January 2, 2011, Spinning anticipated collecting $185,000 of the recorded Accounts Receivable.Pilates entered into the acquisition because Spinning had Copyrights that Pilates wished to own, and also unrecorded patents with a fair value of $100,000.
Required:
Calculate the amount of goodwill that will be recorded on Pilate's balance sheet as of the date of acquisition.Then record the journal entry Pilates would record on their books to record the acquisition.
Correct Answer:
Verified
Goodwill is calculated as follows:
Bec...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
Bec...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q11: Durer Inc.acquired Sea Corporation in a business
Q20: With respect to goodwill,an impairment<br>A)will be amortized
Q26: On January 2, 2011 Piron Corporation issued
Q27: In reference to the FASB disclosure requirements
Q27: On June 30, 2011, Stampol Company ceased
Q28: On January 2, 2011 Palta Company issued
Q30: On January 2, 2011, Pilates Inc.paid $900,000
Q32: Saveed Corporation purchased the net assets of
Q33: On December 31, 2010, Peris Company acquired
Q36: Pepper Company paid $2,500,000 for the net